Amazon is laying off more than 18,000 employees—a significantly bigger number than previously planned—in the latest sign that a technology slump is deepening
. Earlier Wednesday, Salesforce Inc. announced plans to eliminate about 10% of its workforce and reduce its real estate holdings.Amazon investors gave a positive reaction to the latest belt-tightening efforts, betting it may bolster profits at the e-commerce company. The shares climbed nearly 2% in late trading after the Wall Street Journal first reported on the plan.
At the time the company was planning its cuts in November, a spokesperson said Amazon had roughly 350,000 corporate employees worldwide. Jassy has eliminated or curtailed experimental and unprofitable businesses, including teams working on a telehealth service, a delivery robot and a kids’ video-calling device, among other projects.The Seattle-based company also is trying to align excess capacity with cooling demand. One effort includes trying to sell excess space on its cargo planes, according to people familiar with the matter.
The first wave of cuts landed heaviest on Amazon’s Devices and Services group, which builds the Alexa digital assistant and Echo smart speaker, among other products. The group’s chief told Bloomberg last month that layoffs in the unit totaled less than 2,000 people, and that Amazon remained committed to the voice assistant.
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