Wall Street Journal reported on Thursday, sending the e-commerce company’s shares up 13.5%.
Following a months-long review, Amazon has told employees in some unprofitable units to look for jobs elsewhere in the company, the report said, citing people familiar with the matter.
Amazon has closed teams in areas such as robotics and retail, the report added. The devices unit had an operating loss of more than $5 billion a year,
WSJ reported citing documents.
“We’re of course taking into account the current macro-environment and considering opportunities to optimize costs,” Amazon spokesperson Brad Glasser said. The news comes just weeks after Amazon warned of a slowdown in growth for the busy holiday season when it generates the highest sales, saying inflation-wary consumers and businesses had less money to spend.
Last week, Amazon said it will freeze hiring to corporate workforce for the next few months due to an “unusual macro-economic environment”.
Amazon’s cost-cut plan mirrors moves by technology giant Meta Platforms Inc, which on Wednesday said it would cut 13% of its workforce, while other tech giants including Alphabet have also paused hiring.
Amazon scaled up operations during the pandemic as more consumer shopped online, invested in setting up new warehouses and expanded its supply chains, but the e-commerce boom began to wane as pandemic-related restrictions eased.
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