Amazon has announced that it will lay off 9000 staff members due to economic uncertainty and slow growth. The job losses will affect the Amazon’s cash cow cloud computing, advertising and the streaming service divisions.
The tech giant said economic concerns led business customers to scrutinise their spending, while some had decided to hold it back. After the announcement the company’s stock fell 1.8%.
CEO Andy Jassy also blames the economic uncertainty when it comes to massive job loss at the company. In a blog post he said, “some may ask why we didn’t announce these role reductions with the ones we announced a couple months ago,” he wrote.
“The short answer is that not all of the teams were done with their analyses in the late fall.”
“Given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount.”
Markets analyst for Wedbush Securities Michael Pachter said, “I don’t think this means much for other companies, except that all will be more careful before allowing their headcount to balloon in the future.”
To date the company has eliminated 27 000 jobs in recent months, almost 9% of its roughly 300,000-strong corporate workforce.