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Unprofitable Amazon Businesses Will Be Reviewed As Part Of a Cost-Cutting Initiative

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Unprofitable Amazon Businesses Will Be Reviewed As Part Of a Cost-Cutting Initiative

(CTN News) – Despite a broader slowdown in the global technology sector, Amazon is planning a cost-cutting review in order to trim back unprofitable business units.

In an effort to reduce costs, the ecommerce and technology behemoth announced last week that it would pause hiring across its global corporate workforce.

According to the Wall Street Journal, Amazon’s devices business and its Alexa voice assistant service will be reviewed.

Amazon did not provide The Irish Times with a breakdown of its Irish headcount and the distribution of its workers across its various business units.

In September, the company opened its first Irish warehouse, or “fulfillment center”, at the Baldonnell Business Park in Dublin, bringing its Irish headcount to 5,000.

“As part of this year’s review, we will be taking into consideration the current macroeconomic environment and exploring opportunities to optimize costs,” she said.

“We remain optimistic about the future of our larger businesses, as well as new initiatives like Prime Video, Alexa, Grocery, Kuiper, Zoox, and Healthcare,” the spokeswoman said.

Amazon also remains optimistic about the future of the Alexa product, which remains an impoinstrumentalt of its business and an area of investment.

Earlier this month, Amazon warned that consumer spending was in “uncharted waters”, becoming the latest big company to warn of slower growth and higher costs.

Amazon’s aggressive logistics expansion plans have been halted due to poor performance by its core retail unit. Logistics analyst Marc Wulfraat reports that the company has paused or ceased operating at least 50 US warehouses.

The company has also reduced its workforce from 1.62 million at the beginning of the year to 1.55 million by the end of September.

Following the Wall Street Journal report on Thursday, the company’s share price climbed as much as 11 percent in trading.

The news comes during a particularly difficult week for jobs within the ecosystem of global technology companies based in Ireland.

After substantial job losses at Twitter, Meta owner Facebook and Zendesk since November 1, the Government plans to present revisions to the State’s enterprise policy in a white paper as early as next month. Copyright The Financial Times Limited 2022.

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