After massive job cuts of about 50 percent at short message service Twitter and, according to reports, a spate of layoffs at Facebook parent Meta, which also affected about 10,000 jobs, online retailer Amazon is now following suit.
3 percent of employees have to leave
The latter, in turn, will also cut about 10,000 jobs, responding to the deteriorating general economic situation by reducing its expenditure. Only a few days ago it was announced that Amazon is investigating appropriate cost-cutting measures. According to the New York Times, the company’s management has agreed on a massive job cut, confirming the fears of many developers.
In context, cutting 10,000 jobs equates to about 3 percent of the company’s employees.
Alexa in focus
The focus of the job cuts should be Amazon’s Devices division, i.e. the division that takes care of the Alexa language assistant and the devices on which Alexa is primarily used, such as the Echo speakers and the Echo Show displays.
Considered one of Amazon’s biggest loss makers, the Devices division operates largely independently of the rest of the workforce, which nearly doubled during the pandemic, making Amazon extremely profitable.
Although the company has managed to sell several hundred million of the talking speakers in recent years, it makes little money from sales of standalone Alexa products and has not yet developed a promising strategy to generate recurring sales with the devices already sold.
The Appliances department is said to have written red numbers again and again in recent years. In 2018 alone, the deficit was $5 billion.