Speaker 1: As well as we have been reporting, Amazon has confirmed
Speaker 1: plans to eliminate just a eighteen thousand jobs. Joining us
Speaker 1: now to discuss some more. Spencer Soaper Bloomberg Tech Reporter
Speaker 1: spends eighteen thousands more than what we heard about just
Speaker 1: a few months ago. But put us in put it
Speaker 1: in perspective for us. Amazon is a huge company, which
Speaker 1: divisions are going to be affected here. Yes, so they've
Speaker 1: got as of September thirty, they have more than one
Speaker 1: point five million globally. So this is like, you know,
Speaker 1: like a little more than of their overall workforce. Granted,
Speaker 1: most of that workforce are you know, warehouse workers who
Speaker 1: move inventory around. Uh, their their corporate ranks are more
Speaker 1: about three and this eighteen thousand is going to come
Speaker 1: out of the corporate workers. UM, it's largely going to
Speaker 1: be it's most the most mature part of its business.
Speaker 1: It's you know, it's online UM store as well as
Speaker 1: some of the brick and mortar initiatives that they've launched recently.
Speaker 1: And then also it's going to be like human resources
Speaker 1: function like recruiting and onboarding people because they're not gonna
Speaker 1: be doing that much because they're not hiring as many people.
Speaker 1: That's that's sort of think it's interesting that they acknowledge
Speaker 1: that they hired too many people during the pandemic. So
Speaker 1: when we see these cuts now, is it because of
Speaker 1: falling demand or that they just think they hired too
Speaker 1: many managers and they don't need them. Yeah, it's part
Speaker 1: of laying you know, leveling off. And it's also the
Speaker 1: fact that because things leveled off, Amazon has always hired
Speaker 1: like crazy, and generally when they decide that they don't
Speaker 1: need a team, they've always been able to kind of
Speaker 1: absorb people within some other new division that's doing well
Speaker 1: or growing, and so that's not the case now. So
Speaker 1: the rare thing here is that they had to resort
Speaker 1: to a to a layoff, whereas whereas usually Amazon can
Speaker 1: just kind of, um, you know, reassign people that that
Speaker 1: are on something that's shutting down or that it's pruning
Speaker 1: to some other function and they just don't have enough
Speaker 1: enough spaces for all of these extra people. Right now,
Speaker 1: we did see Amazon shares rise and after hours trade.
Speaker 1: What does this mean for the company in terms of
Speaker 1: costs and for its longer term future? Well, in terms
Speaker 1: of cost definitely on the on the hiring and onboarding side, right,
Speaker 1: it just means okay, they definitely expect to plateau for
Speaker 1: a while in terms of the manpower because they're they're
Speaker 1: letting go this whole basically teen that was this set
Speaker 1: up to keep up with this rapid rapid demand expansion
Speaker 1: that they had in terms where they just constantly needed
Speaker 1: to constantly hiring and recruiting more and more people. So
Speaker 1: it does look like it's gonna gonna uh, you know,
Speaker 1: their their employment needs. They're expecting to plateau for a
Speaker 1: bit and level off. We're probably just gonna see more
Speaker 1: targeted and focused uh uh, you know investment and expansion
Speaker 1: from Amazon going forward as opposed to really you know,
Speaker 1: historically it's just been this this race to uh to
Speaker 1: meet meet capacity spencer in thirty sentence or so, is
Speaker 1: this the main way to cut costs with people or
Speaker 1: are there other ways that Amazon is doing so as well.
Speaker 1: They've had a couple of other things that they're doing.
Speaker 1: You know, they've backed off some warehouse expansions. UM. We
Speaker 1: had a scoop a couple of weeks ago about they
Speaker 1: were looking to sell um excess space on their cargo planes.
Speaker 1: So there's some other ways to try to, you know,
Speaker 1: either either get some revenue from the extra space they have,
Speaker 1: or cut or cut costs. Besides just besides this cutting job, Spencer,
Speaker 1: thank you very much for joining US. Spencer Soaper, Bloomberg
Speaker 1: Tech reporter,