Amazon is preparing massive layoffs potentially affecting tens of thousands of employees, multiple outlets reported Monday.
Why it matters: The labor market has been stuck in a nervous equilibrium, where employers weren't hiring but weren't firing either.
- That may be changing.
Driving the news: Amazon will lay off as many as 30,000 corporate employees starting Tuesday, Reuters reported.
- CNBC confirmed that layoffs were coming and were likely to be the largest in Amazon's corporate history.
Zoom out: The cuts at Amazon follow reports that Target will also cut 1,000 corporate roles this week and that similar reductions may be coming at Paramount Skydance.
The big picture: The years-long "frozen labor market" has meant that people with jobs mostly kept them, but those without mostly couldn't find them.
- Economists feared the market would turn with the impact of tariffs earlier this year, which didn't happen.
- Now, though, a number of big employers appear to be sliding in with a round of pre-holiday belt tightening, despite record highs in the stock market and signs of strong economic growth.
For the record: Amazon did not immediately reply to requests for comment.
- Amazon shares were flat in after-hours trading amid the reports.
