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

After Meta, Twitter or Snapchat, it’s time for Amazon, according to the New York Times, to prepare for deletion. The distributor may share 10,000 employees, representing just under 1% of the group’s current payroll, which had 1.54 million employees worldwide at the end of September. Without forgetting seasonal workers, who are recruited during periods of increased activity, especially for the year-end celebration.

The American daily also mentioned that the total number of dismissed employees is likely to change. If the number of 10,000 job cuts is confirmed, it will be the largest social plan in the company’s history. The positions affected by the workforce reductions are located in the Amazon 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 era of euphoria when, in July 2021, the world number one in e-commerce and the cloud fought with Apple and Microsoft for the title of the largest global valuation. At that time, Amazon was worth 1.880 billion dollars, against less than 900 billion today. The increase in inflation, the strong dollar and the tightening of monetary policies directly affect household consumption, and therefore e-commerce, which is its main activity.

The numbers have been reduced

The company announced a hiring freeze at its offices two weeks ago. And its workforce has shrunk since the beginning of the year, when it employed 1.62 million people full-time or part-time. Amazon has indeed hired with a vengeance during the pandemic, to meet the explosion in demand, doubling its global workforce between the beginning of 2020 and the beginning of 2022 but its net income fell by 9% during a year in the third quarter.

And for the current quarter, the important end-of-the-year holiday period, the Amazon company expects anemic growth by its standards, between 2% and 8% over a year, and an operating profit between 0 and 4 billion dollars, against 3.5 for the same period of 2021. Even Amazon Web Services (AWS), the remote computing activity (cloud) of the group, which at the moment shows a relentless growth and profitability. , saw its revenue rise more modestly this summer, climbing 27% , compared to 39% last year.

A very bad patch for the tech giants

Like Amazon, the tech giants are definitely going through a rough patch. Last Wednesday, Meta, Facebook’s parent company, 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, which was just bought by Elon Musk, for its part has fired 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 assets worth 124 billion dollars, the fourth richest person in the world. He said he plans to give most of his wealth to charity during his lifetime in an interview with CNN that aired Monday. In the question” Do you plan to give away most of your wealth in your lifetime? “, the businessman answered:” Yes “. This is the first time that the 58-year-old businessman has made such a public commitment.

In particular, he did not sign the ” Donation pledge “, an initiative launched in 2010 by Americans Warren Buffett and Bill Gates that encourages billionaires to give 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 wealth to charity by signing in 2019, shortly after her divorce , The Donation pledge “. Jeff Bezos wants to make sure his gifts are used as efficiently as possible.” We build capabilities to do it, he said in the interview where he appeared with his partner Lauren Sanchez.

(AFP included)