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Amazon to cut another 9000 jobs

ended 20. March 2023

Amazon has today said it will cut another 9,000 jobs across its global business in “the next few weeks”. Andy Jassy, chief executive of the technology giant, told staff that the move will reduce jobs in its web services, advertising, PXT solutions division and its Twitch livestreaming arm. The cuts come on top of 18,000 job cuts the business had already announced in January. Any thoughts as to what's going on at Amazon, send them over. Is this simply a case of a company reacting to global economic headwinds, streamlining its operations or a sign of deeper problems (in the tech sector)?

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Ben Foster
CEO at The SEO Works
Amazon and the rest of e-commerce WERE the economy during the multiple COVID lockdowns. However since covid, Amazon's core sales have only increased 7% in North America, whilst declining 6% internationally. At the same time operating expenses have exploded by 17%. Supply chain mayhem, inflation, and foreign exchange issues have taken their stock and forced the price downward.

In the past Amazon has got away with not being profitable by consistently growing its total revenue, whilst keeping expenses in check. Amazon is still the 5th most valuable company on earth — but the stock price is definitely being challenged.

So Amazon is looking to control costs whilst it gets through these turbulent waters. These cuts don’t necessarily reflect bad management, they reflect some of the most challenging macro pressures in history.