Amazon to cut 17,000 jobs as layoffs continue in 2023: Report

Amazon.com Inc.'s decision to let off more than 17,000 workers, a much higher number than originally planned, is the latest sign that the technological downturn is worsening.

Initiated last year, the reductions had been anticipated to impact about 10,000 individuals. The Journal, citing unnamed persons familiar with the subject, claims that the layoffs have hit the company's corporate echelons particularly hard.

In recent weeks, after months of analysis, Amazon told workers in underperforming departments to find elsewhere for employment. According to the Wall Street Journal, the business is also taking steps to reallocate people from less profitable areas to more fruitful ones, and to shut down units in industries like robotics and retail.

According to the WSJ, Amazon is giving the Alexa business careful consideration, and at now, the company is debating whether or not it should focus on trying to add new capabilities to the voice assistant, which is already featured on a number of Amazon devices.

The poll found that most people only utilise the device for a few of its features, which increases the cost of developing new ones.

The WSJ previously reported that Alexa's parent business loses over USD 5 billion a year due to operating expenses.

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Amazon has known for months that it employed too many workers during the epidemic, so the possibility of layoffs has been there. However, the rising number of reports shows that the company's outlook has worsened. Like other large tech companies, it's cutting down significantly. Earlier, Salesforce Inc. said that it will be laying off around 10% of its workers and selling off some of its properties.

The new cost-cutting measures at Amazon were well-received by shareholders, who are hopeful that the company's bottom line would benefit from the changes. In after-hours trading, after the news, the stock price increased by roughly 2%.