Amazon.com Inc. is freezing staffing in its profitable advertising business.
According to a person familiar with the matter, Amazon.com Inc. is freezing staffing in its profitable advertising business, suggesting that the world’s largest e-commerce company is taking more drastic measures to align costs with sales. slow down.
This person said the freezing of the number of employees was notified internally on Tuesday, Who The request was not named because the plans are private. Amazon will continue to fill vacancies in its advertising business, but will not create any new positions, the person said.
“Amazon continues to have a significant number of open roles across the company,” a spokesperson said in a statement. “We have different businesses at various stages of development, and we hope to continue to refine our hiring strategies in each of these businesses at different times.”
The decision to keep the ad unit’s workforce at its current level shows that Amazon is looking to profit more from its fast-growing business during the busy holiday quarter. Chief Financial Officer Brian Olsavsky said in a media call last week that Amazon will continue to invest in its advertising and cloud computing divisions, Amazon Web Serviceswhile also looking for other places to cut costs.
Amazon’s advertising business – largely funded by its online store search results – generated $9.55 billion in the quarter ended September 30, up 25% compared with the same period a year earlier.
Shares of Amazon have fallen 13% since October 27, when the company forecast its slowest-ever revenue growth for the holiday quarter. CEO Andy Jassy has been busy reducing costs as sales have fallen to the peak of the pandemic. In October, Amazon imposed a hiring ban on the company’s roles in its retail business and cut and closed some experimental and smaller programs to reduce costs.
