As well as we have been reporting, Amazon has confirmed plans to eliminate just a eighteen thousand jobs. Joining us now to discuss some more. Spencer Soaper Bloomberg Tech Reporter spends eighteen thousands more than what we heard about just a few months ago. But put us in put it in perspective for us. Amazon is a huge company, which divisions are going to be affected here. Yes, so they've got as of September thirty, they have more than one
point five million globally. So this is like, you know, like a little more than of their overall workforce. Granted, most of that workforce are you know, warehouse workers who move inventory around. Uh, their their corporate ranks are more about three and this eighteen thousand is going to come out of the corporate workers. UM, it's largely going to be it's most the most mature part of its business.
It's you know, it's online UM store as well as some of the brick and mortar initiatives that they've launched recently. And then also it's going to be like human resources function like recruiting and onboarding people because they're not gonna be doing that much because they're not hiring as many people. That's that's sort of think it's interesting that they acknowledge
that they hired too many people during the pandemic. So when we see these cuts now, is it because of falling demand or that they just think they hired too many managers and they don't need them. Yeah, it's part of laying you know, leveling off. And it's also the fact that because things leveled off, Amazon has always hired like crazy, and generally when they decide that they don't need a team, they've always been able to kind of absorb people within some other new division that's doing well
or growing, and so that's not the case now. So the rare thing here is that they had to resort to a to a layoff, whereas whereas usually Amazon can just kind of, um, you know, reassign people that that are on something that's shutting down or that it's pruning to some other function and they just don't have enough enough spaces for all of these extra people. Right now, we did see Amazon shares rise and after hours trade. What does this mean for the company in terms of
costs and for its longer term future? Well, in terms of cost definitely on the on the hiring and onboarding side, right, it just means okay, they definitely expect to plateau for a while in terms of the manpower because they're they're letting go this whole basically teen that was this set up to keep up with this rapid rapid demand expansion that they had in terms where they just constantly needed
to constantly hiring and recruiting more and more people. So it does look like it's gonna gonna uh, you know, their their employment needs. They're expecting to plateau for a
bit and level off. We're probably just gonna see more targeted and focused uh uh, you know investment and expansion from Amazon going forward as opposed to really you know, historically it's just been this this race to uh to meet meet capacity spencer in thirty sentence or so, is this the main way to cut costs with people or are there other ways that Amazon is doing so as well. They've had a couple of other things that they're doing.
You know, they've backed off some warehouse expansions. UM. We had a scoop a couple of weeks ago about they were looking to sell um excess space on their cargo planes. So there's some other ways to try to, you know, either either get some revenue from the extra space they have, or cut or cut costs. Besides just besides this cutting job, Spencer, thank you very much for joining US. Spencer Soaper, Bloomberg Tech reporter,