It is said that Amazon, the world's largest e-commerce company, has finally embarked on a workforce restructuring due to concerns about poor performance.



The New York Times obtained an internal report on the 14th local time and reported that Amazon plans to lay off about 10,000 people starting this week.



Reductions will be concentrated in the technical and retail sectors, as well as in the human resources department.



As of the end of June, Amazon employees totaled 1.5 million worldwide, including contract workers, and the number of people reduced this time is not 1%.



However, the New York Times described this job cut as the largest in Amazon's history.



However, it said that the total number of layoffs could be 'fluid'.



Following a hiring freeze in the retail sector last month, Amazon announced on the 3rd that it would suspend hiring in other sectors as well.



Amazon's restructuring appears to have been driven by a significant increase in the number of employees during the COVID-19 period, as well as poor earnings prospects.



At the end of 2019, Amazon had a total of 798,000 employees.



However, through Corona 19, it soared to 1.6 million at the end of 2021, two years later.



This is because we hired a large number of employees due to the surge in delivery during the COVID-19 period.



However, continuing recession fears have made it difficult to maintain staff numbers.



In fact, Amazon's third quarter performance was in line with market expectations to some extent, but its fourth quarter performance was expected to be significantly below expectations.



As a result, the stock price plummeted, and the market capitalization also fell below 1 trillion dollars in 31 months.



Amazon's large-scale job cuts are in line with other information technology companies.



Mehta said last week it had decided to lay off more than 11,000 people, or 13% of its workforce.



Ride-sharing company Lyft, like Uber, effectively notified 13% of its employees earlier this month, and Twitter has laid off 3,700, or half of its employees, since Tesla CEO Elon Musk took over.



Apple and Google, etc., have not yet reached mass layoffs, but have decided not to hire new people for the time being and have gone on a hiring freeze.



(Photo = Getty Image Korea)