Amazon, the online retail giant with 1.5 million employees globally, is set to cut 9,000 jobs in a bid to reduce costs.
The majority of the job cuts will be in cloud computing and advertising, although the company did not specify which countries will be affected.
The cuts are expected to take place within the next few weeks. Amazon’s CEO, Andy Jassy, acknowledged that it was a “difficult decision,” but emphasized that it would be beneficial for the company in the long run.
In January, the company had already cut 18,000 jobs. Jassy noted that most areas of Amazon’s business had been increasing their workforce in recent years.
“However, 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,” he continued.
During the pandemic, Amazon experienced a surge in sales as customers were confined to their homes.
However, the company’s sales have recently slowed down due to consumers spending less amid the cost of living crisis.
Like other tech giants, such as Google and Meta (owner of Facebook, Instagram, and WhatsApp), Amazon is facing the challenge of balancing cost-cutting measures with the need to stay competitive.
Last week, Meta announced its own plan to cut 10,000 jobs.
Mr Jassy said it is “never easy” to lose employees, adding: “To those ultimately impacted by these reductions, I want to thank you for the work you have done on behalf of customers and the company.”
Twitch, a livestreaming platform that features gaming and music content, is another department that will be affected by the job cuts. This news comes shortly after Emmett Shear, who served as Twitch’s CEO for 16 years, announced his resignation.
Amazon acquired Twitch for $1 billion in 2014.