Amazon Layoffs Will Reportedly Total 10,000 Employees

Amazon is planning to lay off roughly 10,000 employees, according to a new report.

The New York Times (which broke the news) stated the layoffs could begin as early as this week. The company’s retail, human resources, and devices divisions will reportedly take the brunt of it. Amazon had no official comment.

Layoffs in the devices division would impact those technology professionals who work on the company’s voice-activated personal assistant, Alexa, and the hardware supporting it. An earlier report from The Wall Street Journal suggested the devices division “had an operating loss of more than $5 billion a year” in some recent years, despite the popularity of Alexa-powered hardware.

During the pandemic, homebound and isolated consumers used Amazon for an incredible amount of shopping. That, combined with organizations’ use of Amazon Web Services (AWS) for their cloud-based infrastructure, drove enormous profits—and equally enormous hiring. Amazon’s overall headcount grew. In September 2021, then-new Amazon CEO Andy Jassy announced plans to hire 55,000 technologists and corporate employees over next several months.

But even as it prepares to potentially lay off workers, Amazon has moved aggressively in recent months to retain its most valuable technology professionals. In February, it boosted maximum base pay for corporate and technology employees from $160,000 to $350,000. It followed that increase in base pay by handing out “record amounts” of stock, including 138 million restricted stock units to employees in the second quarter of 2022.

Other tech giants, after years of heady profits and accelerated hiring, are taking similar steps. For example, Meta recently announced plans to lay off 11,000 workers. At the same time, though, these companies need to retain the technology professionals who can advance their core strategies. How executives navigate the tension between cost-cutting and the need to hire (and retain) expensive specialists will determine how their companies fare over the next few quarters, if not years.   

2 Responses to “Amazon Layoffs Will Reportedly Total 10,000 Employees”

  1. jake_leone

    So today on TMZ, a papparazi commented on Twitter employees, saying something like hey be prepared because there a millions of people who can replace you.
    And such comments point out the contempt that people in non-Computer Science jobs have for techies.
    The statement “It’s as simple as a toaster, there’s nothing to it.”. Well an author actually tried to make a toaster, from scratch, on his own, from base materials. It isn’t easy. Twitter itself is way more complex than toaster. To fix problems that occur in Twitter’s systems, isn’t easy or automatic.
    So it takes 2-3 months, at least, to bring engineers up to speed. If you gut 90% of the workforce, and that 10% left is just too busy fighting fires, well you’ve damaged a company, possibly beyond any ability to help it.
    Think about what happened to Parlor, which was becoming a big competitor to Twitter. Once it was clobbered by service denial, it slumped back to a nothing company.
    This could happen to Twitter. The competitors TikTok and Mastodon are picking up the users.
    Twitter has a huge customer base of users and advertisers, to lose that, they probably will never recover them without a huge influx of capital expense in order to compete with these other companies.
    Musk should have done a side by side, parallel test, with limited staged layoffs.

  2. Crunchbase estimates that, in 2022, there have been 73,000 IT and IT related layoffs like this, up to mid-November.
    An additional 10,000 layoffs? And possibly more to come?
    This indicates to me that the H1b program needs to be suspended for 2023 and 2024 to allow Americans the chance to become fully employed. Many American STEM grads are unable to compete with the cronysim in H1b hiring and lower pay expectations for people with H1b visas – suspending the H1b program helps them get a foot in the door.