(CapitalWatch, May 19, New York) Amazon (Nasdaq: AMZN) is planning to scale back its hiring goals in 2022, according to a report from Business Insider.
The e-commerce company has been hit hard by rapidly evolving economic conditions. As a result, executives said, they'd be cutting costs and aren't prioritizing hiring.
Company executives said Amazon would be reducing its hiring target for its Worldwide Consumer team by over 1,500 people. The team manages Amazon's marketplace, warehouses and delivery and logistics businesses. It also plans to cut the growth of its third-party delivery partners.
Amazon's first quarter earnings report for 2022 delivered disappointing forecasts and significant losses. The company reported a 41% decrease in cash flow compared to the same period last year and operating income fell by $3.7 billion. The company also delivered pessimistic forecasts for the coming quarter.
Economic conditions are weighing on consumers even more and some buyers are returning to physical stores. After thriving in 2020 and 2021 as consumers opted largely for online shopping due to Covid lockdowns, Amazon wiped its pandemic gains last week.
Amazon stock was trading 2% higher Thursday, down less than a percent in the past five days.
A major tech sell-off has hit small and large firms alike this year and Amazon is just one of many slowing their hiring plans. Meta (Nasdaq: FB) also paused its hiring plans and scaled back recruitment plans across departments.
The sell-off also hit Chinese tech companies, but Beijing started showing signs of easing policy as Washington put more pressure on the market.
On Tuesday, Chinese Vice Premier Liu He made comments supporting continued development and public listings. The statements fueled even more hope that China would be scaling back its regulatory crackdown on tech.
Analysts have shifted to a more optimistic stance on Chinese tech stocks. J.P. Morgan analysts upped their outlook for Chinese internet stocks this week, saying they expect "significant uncertainties" to die down. The brokerage raised its ratings to "overweight" for several major Chinese tech companies, including Alibaba Group (NYSE:BABA; HKEX: 9988), and Pinduoduo (Nasdaq: PDD).