Amazon.com Inc is freezing its staffing levels in its advertising businesses to match its slowing sales and is expected to take a few drastic steps.
The company started imposing a freeze on corporate roles in the month of October and is currently in the process of reducing programme costs.
Also read | Amazon shuts online store fabric.com in cost-cutting move
This clearly showed that the from is trying to make the most of its sales during business holidays. the Chief Financial Officer last week stated that the company will continue to invest in its advertising businesses along with computing units, while the company’s web services will try to cut costs.
A source told Bloomberg that the company will continue to hire new employees for its advertising businesses but won’t introduce any new positions.
Defining it to be the slowest revenue growth ever during its holiday era, Amazon’s shares are 13 per cent since October 27. Chief Executive Officer Andy Jesse has been busy slashing expenses in the sales that have hit pandemic highs.
Also read | Amazon workers in parts of US strike amid alleged crackdown on unionisation efforts
The firm’s advertising businesses generated $9.55 billion at the quarter end of September this year, implying to be a 25 per cent increase from the previous year.
One of the recent measures to cut its costs was when the retail giant Amazon announced the closure of Fabrics.com, which was selling fabrics for over 30 years. The company advised its users to purchase clothes from Amazon.
(With inputs from agencies)
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