The company plans to lay off significant numbers of workers from its profitable cloud and advertising divisions. Apart from this, staff will also be reduced from its streaming division Twitch. at the end of last year amazon had laid off workers from the e-commerce, devices and HR divisions. Since the end of last year, many companies in the technology sector have reduced their workforce. These include Microsoft involved in large software companies and Alphabet, which runs Internet search engine Google. Owner of social media site Facebook meta Last week, it said it would lay off about 10,000 workers this year. The business of tech companies grew rapidly during the pandemic and its impact was also seen on their valuations. The valuations of these companies have come down significantly in the last year due to increase in inflation and interest rates.
During layoffs last year, Mark Zuckerberg, Meta’s chief executive officer, told employees in a message: “Weak macroeconomic conditions, increased competition and reduced advertising have resulted in our revenue being much lower than we anticipated. I’ve been wrong and I take responsibility for it.” He said the company needs to focus its resources on areas with high potential for growth, such as AI, advertising and the Metaverse project.
Andy Jassy, Amazon’s CEO, said in a message posted online to workers that the decision was based on an analysis of priorities and uncertainty about the economy. He said, “Some people may ask why this was not announced in the layoffs a few months ago. The answer is that not all teams have completed their analysis.” The company had told last month that the reduction in its profit could continue in the current quarter.
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