As Amazon is reportedly conducting cost-cutting reviews of non-profitable businesses, the employees working at Amazon could join the thousands of laid off tech workers. Over the past few months, the technology industry has been very brutal.
The news of the Amazon review to cut costs has been a boost for the stock price of the company, spurring a 15 percent boost after Amazon announced the review. According to the reports, one of the businesses of Amazon that will be under review is the Amazon Alexa. The Alexa business costs around 5 billion dollars per year to Amazon, which is not a sustainable business model.
According to reports, Amazon is launching deep cost-cutting reviews into many of the businesses owned by the company. The cost-cutting review will be under the direction of Andy Jassy, chief executive officer of Amazon, and it does not sound like the review will be good news for some of the employees working for the company.
Whether it is because of the increasing recession or some ambitious post-pandemic strategies, companies such as Twitter, Meta, and several others are laying off employees in large numbers. Now, it looks like Amazon Inc., is poised to join Twitter and Meta, as the company begins investigating several non-profitable entities or businesses that could be on their way out.
The senior leadership team of the company regularly reviews its investment outlook and financial performance, including part of the company’s annual operating plan review. As part of 2022 review, the company is focusing on taking into account the current macro-environment and opportunities to optimize costs.