Amazon.com Inc reportedly plans to cut 10,000 employees this week as the company prepares for a possible recession and slower growth.
The potential layoff would be the e-commerce giant’s biggest staff reduction to date, representing around 3% of Amazon’s corporate employees.
According to a source, business teams inside Amazon are reviewing their priorities, which could mean that the number of jobs that will be cut may vary during the official announcement.
The source also noted that it would primarily affect Amazon’s device group, particularly those responsible for the voice-controlled digital assistant Alexa, Echo smart speakers, and its retail and human resources division.
Amazon’s CFO Brian Olsavsky predicted last month that there would be a slowdown in its sales during the holiday period as they continue to battle against high energy cost and rampant inflation.
In light of the dim prediction, Amazon’s CEO Andy Jassy decided to streamline their operations by cutting costs.
Longtime Amazon staff spoke out regarding the matter, noting that the cost-cutting has been the most severe they have experienced during the last few months.
As part of the cost-cutting effort, the online retail giant also froze its corporate hirings, delayed warehouse openings, and shut down most of its unprofitable business, including the telehealth service team, kids’ video-calling device, and a delivery robot project.
German Antitrust Authority Amplifies Amazon Probe
On Monday, Germany’s national competition regulatory agency, Bundeskartellamt (BKartA), announces the extension of the two ongoing proceedings against Amazon using the German Competition Act, which grants the agency supplementary powers in regulating huge digital companies.
The first probe examines the mechanism behind Amazon’s algorithmic price controls, which according to the agency, could make it hard for consumers to find offers and even make them unviewable.
In the second probe, the authority inspects the “brandgating” practice and its possible disadvantages for sellers. This includes the brand agreements that decide whether a seller can sell their products on the e-commerce platform.
BKartA’s President, Andreas Mundt, noted, “We are examining in both proceedings whether and how Amazon impedes the business opportunities of sellers that are active on the Amazon marketplace and compete with Amazon’s own retail business.”
“Amazon operates the most important marketplace in eCommerce and thus has a key position in that area, which allows the company to set far-reaching rules for competition on its platform. Our new competencies, which are precisely intended to restrict such power to set rules, allow us to intervene more efficiently against Amazon’s anti-competitive practices,” Mundt added.
Before this, the e-commerce giant also faced a $1 billion class lawsuit in the UK. The allegation was spearheaded by the Hausfeld & Co LLP law firm and focused on Amazon’s supposed bias towards its own products and its third-party sellers who use their storage and delivery services.
