Amazon announced an increase in job cuts
2022.11.18 14:29
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Amazon announced an increase in job cuts
Budrigannews.com – Reacting to news that Amazon (NASDAQ:) has confirmed it is downsizing to maintain profitability due to macro uncertainty, Citi analysts said the company believes more cuts are likely to come by early 2023.
Analysts have a buy rating of Amazon shares and a price target ofっ145, the main sectors affected by the cut are mainly Amazon devices and books and their people, experience, and technology.
“The full scope of RIF is unconfirmed, but multiple news outlets have cited -10K (-3% of corporate employees) in total workforce cuts, and we expect Amazon to have the potential to cut additional positions in 2023 if the budget plan is finalized and voluntary takeover offers are not accepted by enough employees,” the analysts wrote. “These cuts follow Amazon’s 11/02 gradual “pause” in corporate recruitment, noting that the company has pledged to hire a “meaningful number” of people from its core business and new initiatives, Prime Video, Alexa, Grocery, Kuiper, Zoox and Healthcare.”
Citi said the net impact of the layoffs would be a 3% reduction in the company’s workforce, “to a magnitude that is likely to be determined by the results of voluntary cuts,” by early 2023.
“The business environment is clearly becoming more challenging and we are looking for continued efficiency across our FC network and the business as a whole, but we believe these reductions need to maintain a profitability baseline, especially as comp becomes easier through 2023,” the analyst concludes.
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