Following the path of several other major tech companies, Amazon is planning to lay off thousands of workers as the e-commerce leader continues a broad cost-cutting review, according to news reports. AMZN stock fell Monday.
The layoffs, reportedly of about 10,000 employees, are expected to begin this week. They are focused on devices (including its line of Alexa smart speakers), its retail division and human resources, said a report in the New York Times.
The round of layoffs will account for about 3% of its corporate staff and less than 1% of its global workforce. Amazon has 1.5 million full- and part-time employees. The company already had announced plans to freeze hiring for corporate roles in its retail division.
Amazon stock dropped 2.3% to close at 98.49 on the stock market today.
Additional Big Tech Layoffs
The Amazon layoffs follow those of Meta Platforms, which plans to slash about 11,000 jobs, and Twitter, which is shaving 3,700 jobs, or about half its staff.
Elsewhere, ride-hailing company Lyft said it is cutting 700 jobs, or about 13% of its workforce.
Also, Stripe expects to cut 14% of its staff. Snap and Salesforce also have recently shed workers.
Companies have been hit by a sharp slowdown in digital ad spending, in addition to a weakening economy, inflation and rising interest rates.
AMZN Stock Plunges On Earnings
Amazon plunged 11% in late October after reporting third-quarter results that beat on earnings but with a fourth-quarter revenue outlook that fell short of expectations.
For its fourth quarter, Amazon expects revenue in the range of $140 billion to $148 billion. The midpoint of $144 billion was below estimates of $155.1 billion..
"There is obviously a lot happening in the macroeconomic environment, and we'll balance our investments to be more streamlined without compromising our key long-term, strategic bets," Chief Executive Andy Jassy said in a written statement with the earnings release.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
