Layoffs Are Imminent – Amazon Follows Suit
After a dismal third-quarter earnings and forecasts, tech companies have begun cutting costs, mainly by decreasing their employee headcounts. In the past week, Facebook’s parent-company Meta had cut almost 11,000 jobs, which is roughly equal to 13% of their staff. Other prominent players in the industry that did the same include Twitter, Netflix, and Microsoft, all attempting to compensate for decreasing revenues from the Fed’s actions to tighten inflation.
The newest company confirmed to enter the fray is Amazon, which will be laying off an estimated 10,000 employees from corporate and technology departments. This will be the largest cut in Amazon’s history and will equate to around 3% of their corporate employees and 1% of their global workforce. These layoffs will also come at a significant time, as Amazon has previously needed larger headcounts for the holiday season to meet higher demands. This also comes after the trillion-dollar company froze hiring in October, discontinued its telehealth service, closed call centers, and much more. Nevertheless, shares of Amazon are still down 41% for the year, and investors should look at retail sale data on Wednesday to gauge the future of the e-commerce king.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.