It is reported that Amazon will dismiss 10,000 employees, if realized, it will be the largest personnel reduction in Amazon's history

It was reported that e-commerce and cloud computing giant Amazon is preparing to lay off as many as 10,000 employees as major technology companies such as

https://www.nytimes.com/2022/11/14/technology/amazon-layoffs.html

Amazon mass layoffs will reportedly ax 10,000 people this week - The Verge
https://www.theverge.com/2022/11/14/23458097/amazon-layoffs-expected-10000-employees

The New York Times reports that Amazon's layoffs are likely to focus on its device business, human resources department, and retail department, including its Alexa-equipped products. About 10,000 employees are scheduled to be dismissed, which is equivalent to 1% of all Amazon employees.

It is reported that this layoff may be deeply related to Amazon reconsidering the priority of Alexa and its own devices. It is reported that Amazon CEO Andy Jassy is considering reducing investment in Alexa-equipped terminals as one of the cost-cutting measures.

Amazon is proceeding with ``business review for cost reduction'' such as device business including Alexa, which has suffered an operating loss of more than 700 billion yen - GIGAZINE

In response, Amazon spokesman Brad Glasser said, 'We remain optimistic about the future of the Alexa brand and believe Alexa is an important business for Amazon and a key investment area. It will continue to exist, ”he commented on The Verge, an overseas media. However, Glasser admits that Amazon's device business is 'considering changes', and in fact, the company's device business has recorded an operating loss of $ 5 billion (about 700 billion yen) in the last few years. It is clear that reform is needed.

As the U.S. economy falters, tech giants seek to cut spending by significantly slowing their hiring bases or freezing them entirely. Like Meta, Amazon has been over-investing on the basis of record sales in the early days of the COVID-19 pandemic. However, in early November 2022, Amazon has announced that it will suspend new employment throughout the company, and is working to reduce costs.

The Verge reports that if Amazon dismisses 10,000 employees, it will be the largest personnel reduction in Amazon's history.