Amazon plans to eliminate more than 18,000 jobs, the most ever in the history of the company, as it fights to reduce costs.
The online giant, which employs 1.5 million people worldwide, did not specify which nations would be affected by the job cuts but did say they would include Europe.
Its consumer retail business and human resources division will be where the majority of job losses occur.
Boss Andy Jassy blamed the cuts on the “uncertain economy,” claiming that the company had “hired quickly over several years.”
In a memo to staff, he stated, “We don’t take these decisions lightly or underestimate how much they might affect the lives of those who are impacted.”
He claimed that one of the company’s employees had leaked the layoffs to the outside world, prompting the early announcement.
“Long-lasting businesses go through various stages. They don’t constantly have heavy population growth going on “Added he.
After experiencing a business boom during the pandemic, when customers were stranded at home and spent a lot online, Amazon has seen sales slow.
Tech companies are being hard hit by a potent confluence of falling advertising revenues as a result of businesses cutting costs and consumers cutting back on spending as the cost of living crisis bites.
Both Salesforce, a provider of cloud-based business software, and Meta, the owner of Facebook, Instagram, and WhatsApp, have recently announced significant layoffs.