U.S. tech giant Amazon CEO Andy Jassy is leading the company’s cost-cutting review and downsizing the company’s not-yet-profitable businesses, with voice assistant Alexa, robotics, retail and other departments affected, according to people familiar with the matter, the Wall Street Journal reported.
Some sources said the cost-cutting review will last for several months. As part of this review, Amazon has told some of its unprofitable division employees to look for work in other positions at the company because the teams they work on are being suspended or shut down.
The U.S. media noted that this approach by Amazon contrasts with the company’s massive expansion during the epidemic. From the end of 2019 to the end of 2021, Amazon hired more than 800,000 employees, mostly at its hundreds of warehouses, to keep up with the surge in orders on the line.
During that time, Amazon also spent more than $10 billion to acquire a robotics equipment maker, a film and TV studio and a primary care health company. Amazon is continuing to invest in areas of the business that it sees growth potential, such as healthcare, the sources said.
