Amazon plans to lay off around 10,000 employees this week amid sluggish growth: Report

Amazon's growth slowed to the lowest rate in two decades and the company faced high costs from decisions to overinvest and rapidly expand.

After Meta and Twitter, shopping platform Amazon has now planned to cut down jobs of around 10,000 employees this week, as per several media reports. The layoff is said to be one of the largest job cuts in the company's history to focus on the company's devices organization, retail division and human resources, the New York Times reported on Monday, citing people with knowledge of the matter.

However, the exact number of job cuts still remains unknown. Notably, Amazon recorded tremendous profit when the Pandemic was at its peak as consumers flocked to online shopping and companies to its cloud computing services. However, earlier this year Amazon's growth slowed to the lowest rate in two decades and the company faced high costs from decisions to overinvest and rapidly expand. High inflation affected sales of the tech giant to a huge extent, according to New York Times.

Tech-giant Amazon entered the race of mass layoffs after Twitter and Meta slashed jobs over the last few weeks to cut expenses and transform business models. Facebook parent Meta announced on Wednesday to slash around 11,000 jobs as a part of mass layoffs to cut expenses and transform its business model.

"We are also taking a number of additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1," said Meta CEO Mark Zuckerberg in a statement on Wednesday.

Zuckerberg termed the layoffs as some of the most difficult changes the company has made in Meta's history and added that everyone in the company will soon get an email "letting you know what this layoff means for you."

Notably, the layoffs are expected to affect many thousands of employees and an announcement is planned to come as soon as Wednesday, according to people familiar with the matter. Moreover, Twitter too announced layoffs after Tesla CEO Elon Musk became Twitter's owner.

In April, Twitter accepted Musk's proposal to buy and make the social media service private. However, Musk soon began sowing doubt about his intentions to follow through with the agreement, alleging that the company failed to adequately disclose the number of spam and fake accounts on the service.

In July, in a surprising turn of events, Musk who had long been showing his interest to buy Twitter terminated the deal. The Tesla CEO did so by alleging that Twitter violated their mutual purchase agreement by misrepresenting the number of spam and fake bot accounts on its platform.