According to a news report, Amazon.com, Inc. (NASDAQ: AMZN) will lay off hundreds of corporate employees, which is a rare cutback for the company.
According to the people familiar with the matter, the layoffs are mainly at Amazon’s headquarter in Seattle, and primarily focused on customer retail businesses. The cutback will also influence hundreds elsewhere of global operations.
The layoffs are expected to complete in the next few weeks and some of the workers have already be informed. The company’s layoffs are the result of rapid growth in the last two years, which left too much staff in some teams and over budget in some units. “Amazon has a problem right now with overpopulation,” an unnamed engineer said.
“As part of our annual planning process, we are making head count adjustments across the company — small reductions in a couple of places and aggressive hiring in many others,” an Amazon’s spokesperson said. “For affected employees, we work to find roles in the areas where we are hiring.”
Despite the cutback, Amazon continues to hire employees. In December, the company’s global workforce was 566,000, and it has 12,500 job openings on Monday, counting only corporate roles outside the company’s warehouses, according to the news report. Considering the company’s staffing levels, the cutbacks are modest.