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Mon Nov 14 2022 11:33:40

Would Rumored Amazon Layoffs Impact Online Sellers?

By: Ina Steiner

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The New York Times reported Amazon may layoff 10,000 people beginning as early as this week, focusing on its devices organization, retail division, and human resources.

Ecommerce expert Juozas (Joe) Kaziuk─Śnas of Marketplace Pulse tweeted that could lead to a greater percentage of GMV (sales) shifting to marketplace sellers: "Amazon is about to layoff 10,000 people in Alexa (meh product), HR (inconsequential), and retail (expect more GMV % shift to marketplace)," he tweeted.

In the third quarter, it was already at its highest point to date at 58% of paid units sold, according to Amazon Chief Financial Officer Brian Olsavsky, who told Wall Street analysts:

"Third-party sellers and the products they offer remain an important strength of our offering for consumers, representing 58% of total paid units sold in Q3, the highest percentage ever. It's up from 56% in Q3 of last year. And we're working with these partners, most of whom are small- and medium-sized businesses, to build an even stronger offering."

The message in that late October earnings call was that Amazon was tightening its belt amid what it called an uncertain fourth quarter due to macroeconomic challenges.

The New York Times said Amazon had already reduced headcount by almost 80,000 through attrition from April through September and froze corporate hiring across the company 2 weeks ago. You can dig into the report on NYTimes.com (paywall), which also noted other recent corporate layoffs in the tech industry.

Amazon's fiscal disciplinary actions will likely pressure other companies to do likewise, including rivals. Sellers may be wondering which ecommerce company may be next to consider layoffs.



Comments (8) | Permalink

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by: terry55 This user has validated their user name.

Tue Nov 15 16:21:05 2022

Yet he just gave Dolly $20 million for charity but laying off 10k workers, maybe she'll help them with money

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by: Snapped This user has validated their user name.

Wed Nov 16 16:24:54 2022

Bezos stepped down as CEO to become executive chairman in July 2021. He now owns a bit less than %13 of the company.  

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This user has validated their user name. by: iheartjacksparrow

Wed Nov 16 19:54:23 2022

@terry55 - Actually, it was $100M.

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by: Chicago48 This user has validated their user name.

Thu Nov 17 05:36:58 2022

It's none of our business what Bezos does with his money.  He said he was giving it all away to charity.  His children are secure.  It's none of our business what he does with his money, and actually none of our business how he or the new CEO manages the company.
I'm sure those laid off (BTW they were offered jobs inside AMZ in other departments) will be successful finding other work.  There are 10 million open jobs in America.  There's a movement to let all 2 million immigrants seeking asylum come into the country to take the jobs.  

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This user has validated their user name. by: Bidonmine

Thu Nov 17 08:52:36 2022

Amazon just finished a warehouse in Clarksville TN which is only 5 miles from my home... Now they are delaying opening it for 8 to 12 months.Everyone that was hired over the last few months now has to find another job. The warehouse construction destroyed fertile farm land.

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by: Stone Cutter This user has validated their user name.

Thu Nov 17 09:01:34 2022

***10k is Nothing***

Wall Street laughs at the layoffs as being nothing, really. Amazon employs 1.5 million employees. A reduction of 10k in headcount is less than10% of Amazons total staffing.

My husband says it best...reducing 10k employees is an excuse for Amazon to get rid of their idiots.

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by: Stone Cutter This user has validated their user name.

Thu Nov 17 09:29:55 2022

CORRECTION....What I meant to say is that a reduction of 10K employees is less than 1% of Amazons total labor force (not 10%)

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by: postbuster This user has validated their user name.

Sun Nov 20 07:35:18 2022

@ Stone Cutter

Fair, but what if the ones doing the layoffs ARE the idiots?

Most times it's the workforce taking the hit leaving the burden of demand on the ''good ones'' left.

Ex. Twitter



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