After Meta and Twitter, Amazon prepares to cut thousands of posts

After Meta, Twitter or Snapchat, it is Amazon’s turn, according to the New York Times, to prepare for the lay off. The distributor may dispose of 10,000 employees, which represents just under 1% of the group’s current payroll, which had 1.54 million employees worldwide at the end of September. Without forgetting the seasonal workers, recruited in periods of greater activity, namely for the end of year festivities.

The American newspaper also mentions that the total number of dismissals should change. If the figure of 10,000 job cuts is confirmed, it would be the biggest social plan in the company’s history. The jobs affected by the headcount reductions will be located in Amazon’s Devices department – electronic devices equipped with the Alexa voice assistant or even Kindle readers – in the retail division, as well as in human resources. However, the breakdown by country is not specified.

It seems a long way from the euphoria when, in July 2021, the world’s number one in e-commerce and cloud battled Apple and Microsoft for the title of highest global valuation. At the time, Amazon was worth $1.88 billion, down from less than $900 billion today. The increase in inflation, the strong dollar and the tightening of monetary policies directly impact household consumption and, therefore, e-commerce, which is its main activity.

Numbers have already gone down

The company had already announced a hiring freeze at its offices two weeks ago. And its workforce has already shrunk since the start of the year, when it employed 1.62 million people full-time or part-time. Amazon actually hired hard during the pandemic to meet the explosion in demand, thereby doubling its global staff between early 2020 and early 2022, but its net profit fell 9% on a year in the third quarter.

And for the current quarter, a crucial period of the year-end festivities, the Amazonian company anticipates anemic growth for its standards, between 2% and 8% in a year, and an operating profit between 0 and 4 billion dollars, against 3 .5 for the same period in 2021. Even Amazon Web Services (AWS), the group’s remote (cloud) computing activity, which has so far shown spunky growth and profitability, has seen its revenue increase more moderately this summer, rising 27%, compared with 39% a year ago.

A very bad patch for the tech giants

Like Amazon, the tech giants are definitely going through a really bad patch. Last Wednesday, Facebook’s parent company Meta announced the loss of 11,000 jobs, or about 13% of its workforce. At the end of August, Snapchat cut about 20% of its workforce, or more than 1,200 employees. Twitter, recently bought by Elon Musk, has laid off about half of its 7,500 employees.

Zoom – Jeff Bezos plans to distribute his wealth to charity

If times are complicated for Amazon, Jeff Bezos, its founder, remains, with a heritage valued at 124 billion dollars, the fourth richest person in the world. He said he plans to donate most of his fortune to charity over his lifetime in a CNN interview that aired on Monday. In the question ” Do you plan to give most of your wealth away during your lifetime? “, replied the businessman:” Yea “. This is the first time that the 58-year-old businessman has publicly made such a commitment.

In particular, he did not sign the ” pledge of donation “, an initiative launched in 2010 by the Americans Warren Buffett and Bill Gates that encourages billionaires to donate more than half of their wealth to charities. Jeff Bezos’ ex-wife MacKenzie Scott, whose fortune is estimated at nearly $24 billion, pledged to donate at least half of her fortune to charity by signing in 2019, shortly after her divorce, the pledge of donation “.Jeff Bezos wants to make sure his gifts are used as efficiently as possible.” We build capabilities to do this, he said during the interview in which he appeared alongside his partner Lauren Sanchez.

(With AFP)