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Amazon announces 9,000 job cuts in the face of uncertain economy

On Monday, Amazon announced that it would be cutting 9,000 jobs, joining a number of Big Tech companies that have recently been forced to make layoffs due to the ongoing economic. Other major tech giants, including Microsoft, Salesforce, Alphabet, and Meta Platforms, have also been shedding jobs in recent months, after hiring sprees in the wake of the pandemic left them overstaffed.

Picture: Kumaon Jagran

Amazon's CEO, Andy Jassy, explained in a statement posted on the company's website that the company had added a substantial number of employees in recent years, but the uncertain economic climate had made it necessary to cut costs and headcount. The cuts will be focused on its cloud services, advertising, and Twitch units. "Given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount," Jassy said.

The news comes after Amazon reported that its operating profit may continue to slump in the current quarter, due to the financial impact of consumers and cloud customers cutting back on spending. Sales from its lucrative cloud-computing division slowed during the fourth quarter, and Amazon has also scaled back or shut down entire services, such as its virtual primary care offering for employers.

Shares of Amazon were down 1.4% in morning trading on the Nasdaq, reflecting investor concerns about the company's profitability in the face of the economic uncertainty caused by the pandemic.

Amazon is not alone in its struggles. Meta Platforms, the parent company of Facebook, announced last year that it would be cutting more than 11,000 jobs, and has now announced plans to cut an additional 10,000 jobs this year. The company has cited ongoing economic uncertainty and changes in user behavior as reasons for the cuts.

Other major tech companies, including Microsoft and Salesforce, have also recently announced layoffs, as they seek to adjust to the changing economic landscape brought on by the pandemic.

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