Thursday 10 November 2022 09:41 PM Tech layoffs now hit Amazon: Workers in 'unprofitable' units, like Alexa which ... trends now
Amazon looks to be the latest tech company to fall victim to a wave of layoffs, with brass at the online seller looking to make major cuts in units that have failed to turn a profit this year.
Under strict scrutiny is the firm's Alexa business, which has recorded an operating loss of more than $5billion a year - despite boasting more than 10,000 staffers and being a major recipient of investment capital.
The company, meanwhile, recently earned the dubious distinction of being the first public firm to record a $1trillion loss in market value - a direct result of rising inflation and disappointing earnings updates.
That, among other factors, triggered a historic stock selloff - pushing the e-commerce giant's market value to about $879 billion from a record $1.88trillion in 2021.
This slowing growth has since spurred senior staffers to instruct employees in other underperforming divisions to look for jobs elsewhere in the company - after being notified the teams they were working on were being suspended or nixed altogether.
The review is being spearheaded by Chief Executive Andy Jassy, who has been forced to grapple with slowing growth since assuming the CEO position in 2021.
Other divisions deemed unprofitable by the monthlong probe, which was first reported by The Wall Street Journal, have yet to be specified.
Amazon is in the midst of a cost-cutting review on its underperforming divisions, with staffers in underperforming divisions instructed to looks for jobs elsewhere in the company
The company, meanwhile, recently earned the dubious distinction of being the first public company to record a $1trillion loss in market value, with the sum wiped from its evaluation in the past year - a direct result of rising inflation and disappointing earnings updates
Under strict scrutiny is the team that works on the e-commerce firm's Alexa, which has reportedly recorded an operating loss of more than $5billion a year - despite boasting more than 10,000 staffers
When asked by the Journal about the probe Thursday, a spokesperson for the retailer confirmed its leadership were in the process of a review 'to optimize costs.'
'Our senior leadership team regularly reviews our investment outlook and financial performance, including as part of our annual operating plan review,' the rep told the paper in a statement.
'As part of this year’s review,' the spokesperson continued, 'we’re of course taking into account the current macro-environment and considering opportunities to optimize costs.'
The rep would then seemingly dismiss concerns over its flailing Alexa technology - as well as the current state of the economy - asserting that Amazon is 'as optimistic about Alexa’s future today as we've ever been.'
'It remains an important business and area of investment for Amazon,' the staffer said of the popular cloud-based voice service.
The review is being spearheaded by Chief Executive Andy Jassy, previously held by founder and current executive chairman Jeff Bezos, last year
With that said, the company, unlike Twitter and Meta, has yet to officially announce any significant layoffs.
It did, however, implement a hiring freeze last week - following suite with other tech titans such as Apple and Google-parent Alphabet - and is further expected to reduce headcount through attrition.
The freeze was enacted across the corporate level of the company, and affected major teams including the thousands working on Alexa, as well as other well-manned divisions for both Prime Video and Amazon Fresh.
It is not clear if those divisions, like Alexa, have also been deemed unprofitable by Jassy's probe.
The company currently employs
