Amazon is rumored to be planning to layoff 10,000 technology and corporate employees within the next week.
According to sources familiar with the matter, the cuts will affect the company’s devices organization, its retail division, and its human resources.
According to Amazon, the move would be the largest job loss in its history. It would affect 3% of its corporate employees as well as 1% of its global workforce.
FOX Business reached out to Amazon representatives but they did not respond immediately.
The decision comes after Amazon CEO Andy Jassy started a cost-cutting review that included scaling down businesses that aren’t profitable like its devices unit. People familiar with the matter told The Wall Street Journal.
Sources told the Journal that Amazon had warned employees in low-performing units to be prepared to find another job as it cuts back amid uncertain economic conditions.
Amazon implemented an earlier in the month a hiring freeze on corporate positions.
Amazon’s senior vice-president of people experience, technology and Beth Galetti announced to employees that Jassy and her leadership team made the decision due to the uncertainty in the economy and considering how many Amazon employees have been hired in recent years.
Galetti stated that “we’re facing an extraordinary macro-economic environment and want to balance out our hiring and investments while being thoughtful about the economy.”
Galetti pointed out that the company had previously issued hiring pauses to other divisions and decided to stop all corporate hiring.
Galetti explained that Amazon anticipates “keeping this pause intact for the next few months”, as it continues to monitor and adjust the economy and business.
Jeff Bezos, the former CEO of Goldman Sachs, also warned last month via Twitter that “the probabilities” in this economy “tell you to batten down your hatches.” He was also in agreement with David Solomon, Goldman Sachs CEO who earlier that day had warned that the U.S. would be in recession.