Connect with us

Published

on

Amazon on Wednesday commenced the latest wave of job cuts in its corporate workforce in what’s poised to be the largest round of layoffs in the company’s history.

Employees were notified of the cuts in emails sent by Doug Herrington, the company’s worldwide retail chief, and human resources head Beth Galetti, CNBC confirmed. Amazon said earlier this month that it will cut more than 18,000 jobs.

Amazon’s human resources and stores divisions are likely to be among the organizations most severely impacted by the job cuts. The company expects to notify all affected employees in the U.S., Canada and Costa Rica by the end of the day, Galetti and Herrington said in their memos.

Employees in other regions may be informed later. In China, for example, the company will notify staffers after the Lunar New Year.

The layoffs come after a period of rapid head count growth at Amazon during the Covid-19 pandemic. In November, CEO Andy Jassy said the company would begin eliminating roles, primarily in its devices and recruiting organizations.

Jassy is also undergoing a broad review of Amazon’s expenses as the company reckons with an economic downturn and slowing growth in its core retail business. Amazon froze hiring in its corporate workforce, axed some experimental projects and slowed warehouse expansion.

WW Stores Team,

I want to send a note that today we will be notifying employees impacted by our decision to reduce our Amazon WW stores corporate headcount. Notification emails will be sent out to impacted employees shortly, and we expect all notifications in the U.S., Canada and Costa Rica to be completed by end of the day today. In other regions, we are following legal processes, which may include time for a consultation with employee representative bodies starting as soon as today and possibly resulting in longer timelines to communicate with impacted employees. And in China, we will notify employees after the Chinese New Year.

While it will be painful to say goodbye to many of our talented colleagues, it is an important part of a wider effort to lower our cost to serve so we can continue investing in the wide selection, low prices, and fast shipping that our customers love. During Covid, our first priority was scaling to meet the needs of our customers while ensuring the safety of our employees. I’m incredibly proud of this team’s work during this period. Although other companies might have balked at the short-term economics, we prioritized investing for customers and employees during these unprecedented times.

The exit out of Covid this past year was challenging, with labor shortages, supply chain difficulties, inflation, and productivity overhang from growing our fulfillment and transportation networks so substantially during the pandemic, all of which increased our cost to serve. As we head into 2023, we remain in uncertain economic times. Therefore, we’ve determined that we need to take further steps to improve our cost structure so we can keep investing in the customer experience that attracts customers to Amazon and grows our business.

Our plan to improve our cost structure will unfortunately include role reductions. It is painful and rare for us to take this step, and I know how difficult this is on the individuals impacted and their loved ones. Our goal is to make sure every impacted employee is assisted in this transition, so for example, in the U.S., we are providing packages that include a 60-day non-working transitional period with full pay and benefits, plus an additional several weeks of severance depending on the length of time with the company, a separation payment, transitional benefits, and external job placement support. I would like to personally thank each and everyone of you affected by the plan changes for your contributions to our customers and your broader team.

Role reductions are one of several steps we are taking to lower our cost to serve. We are also increasing local in-stock of the most popular times, making it easier for customers to consolidate shipments for multiple items, and increasing the ways customers can buy the low-priced everyday essentials they need to keep their households running, all with the aim of reducing our network and delivery costs. And by improving our cost structure, we are also able to continue investing meaningfully in big growth areas such as grocery, Amazon Business, Buy with Prime, and healthcare.

To those who are staying, I know this is a difficult time for you, as well, and it’s important we support one another. We are saying goodbye to people we’ve worked closely with, and there is plenty of hard work ahead as your innovate on behalf of customers. Although I would prefer not to eliminate even a single role, we are making these changes now to keep investing in improving the customer experience, which will strengthen our business for the long term.

As I’ve shared with many of you, I have never been more optimistic about the opportunity in front of us. For over 25 years, we’ve innovated on behalf of customers, and in so many ways, we are just getting started. Lowering our cost to serve will be a core priority for us in the years ahead to fund even more innovation. It’s not just about doing more with less, but rethinking how we serve our customers, how we organize internally, and what new areas of innovation we invest in. Every team has a role to play in finding ways to reduce costs while improving selection, pricing, and delivery speeds. I am confident that Amazonians will bring their ownership, innovation, and bias for action to this challenge, unlocking even more value for customers.

Doug

All,

Today we took the difficult step of reducing roles across Amazon. While several teams are impacted, the majority of role eliminations are in our WW Amazon Stores business and our People Experience & Technology (PXT) organization.

Conversations with impacted employees took place around the world today, and this morning, Pacific Time, notification messages were sent to all impacted employees in the U.S., Canada, and Costa Rica. We are providing impacted employees with a number of resources, and PXT leaders will host country-specific information sessions for the U.S. and Canada today while leaders are setting up meetings with each affected team member. In other regions, we are following local processes, which may include time for consultation with employee representative bodies and possibly result in longer timelines to communicate with impacted employees. In China, we will notify employees after the Chinese New Year.

Our priority in the coming days is supporting those who are affected. To help with the transition, we are providing packages that include a separation payment, transitional benefits as applicable by country, and external job placement support.

Please continue to show the support and care that I so often witness here at Amazon. This is a very difficult time, so we encourage you to reach out to My HR with questions and remember that our Employee Assistance Program (EAP) is available 24/7 for free and confidential help.

Beth

Continue Reading

Technology

Meta goes to arbitrator to prevent whistleblower from promoting tell-all book

Published

on

By

Meta goes to arbitrator to prevent whistleblower from promoting tell-all book

This photo illustration created Jan. 7, 2025, shows an image of Mark Zuckerberg, CEO of Meta, and an image of the Meta logo.

Drew Angerer | Afp | Getty Images

Meta is seeking to stop the promotion of a new memoir by a former staffer that paints the social media company in an unflattering light, including allegations of sexual harassment by the company’s policy chief. 

An emergency arbitrator ruled Thursday that Sarah Wynn-Williams is prohibited from promoting “Careless People,” her book that was released Tuesday by Flatiron Books, an imprint of publisher Macmillan Books.

The memoir chronicles Wynn-Williams’ tenure at Facebook from 2011 through 2017. During that time, she became a high-level employee who interacted with CEO Mark Zuckerberg, then-COO Sheryl Sandberg and Joel Kaplan, the company’s current policy chief. In the book, Wynn-Williams alleges that Kaplan made a number of inappropriate comments to her, which she then reported to the company as sexual harassment.

“This is a mix of out-of-date and previously reported claims about the company and false accusations about our executives,” a Meta spokesperson previously said about both her book and complaint.

Wynn-Williams also details in her book the company’s various attempts to enter the Chinese market, including building tools that would censor content to appease the Chinese Communist Party. Wynn-Williams addressed some of these China-specific claims in a whistleblower complaint that she filed in April with the Securities and Exchange Commission, NBC News reported.

The emergency arbitrator ruled in favor of Meta after watching a podcast appearance of Wynn-Williams in which she discussed her memoir and her allegations that Meta was attempting to “shut this book down.”

“The Emergency Arbitrator finds that, after reviewing the briefs and hearing oral argument, (Meta) has established a likelihood of success on the merits of its contractual non-disparagement claim against Respondent Wynn-Williams, and that immediate and irreparable loss will result in the absence of emergency relief,” the filing said.

Additionally, the arbitrator ruled that so much as Wynn-Williams can control, she is prohibited from further publishing or distributing the book and from further disparaging Meta and its officers or repeating previous disparaging remarks. The arbitrator also ruled that Wynn-Williams is to retract her previous disparaging remarks.

The company has previously dismissed Wynn-Williams’ claims as “out-of-date” and said that she was fired for “poor performance and toxic behavior.”

Meta spokesperson Andy Stone shared the emergency arbitrator’s ruling in a post on Threads, saying that it “affirms that Sarah Wynn Williams’ false and defamatory book should never have been published.”

“This urgent legal action was made necessary by Williams, who more than eight years after being terminated by the company, deliberately concealed the existence of her book project and avoided the industry’s standard fact-checking process in order to rush it to shelves after waiting for eight years,” Stone said.

Meta alleged that Wynn-Williams violated the non-disparagement terms of her September 2017 severance agreement, resulting in the company filing an emergency motion on Friday. The emergency arbitrator then conducted a telephone hearing involving legal representatives of Meta and Macmillan Books, but not Wynn-Williams who did not appear though she was given notice, the filing said.

Wynn-Williams, Flatiron Books and Macmillan Books did not respond to requests for comment.

WATCH: What’s driving Meta’s stock run

What's driving Meta's stock run

Continue Reading

Technology

Intel appoints Lip-Bu Tan as new CEO, stock jumps 12%

Published

on

By

Intel appoints Lip-Bu Tan as new CEO, stock jumps 12%

Lip-Bu Tan appointed chief executive officer of Intel Corporation

Courtesy: Intel

Intel said on Wednesday that it had appointed Lip-Bu Tan as its new CEO, as the chipmaker attempts to recover from a tumultuous four-year run under Pat Gelsinger.

Tan was previously CEO of Cadence Design Systems, which makes software used by all the major chip designers, including Intel. He was an Intel board member but departed last year, citing other commitments.

Tan replaces interim co-CEOs David Zinsner and MJ Holthaus, who took over in December when former Intel CEO Patrick Gelsinger was ousted. Tan is also rejoining Intel’s board.

The appointment closes a chaotic chapter in Intel’s history, as investors pressured the semiconductor company to cut costs and spin off businesses due to declining sales and an inability to crack the booming artificial intelligence market.

Intel shares rose over 12% in extended trading on Wednesday.

Tan becomes the fourth permanent CEO at Intel in seven years. Following Brian Krzanich’s resignation in 2018, after the revelations of an inappropriate relationship with an employee, Bob Swan took the helm in Jan. 2019. He departed two years later after Intel suffered numerous blows from competitors and chip delays. Swan was succeeded by Gelsinger in 2021.

Gelsinger took over with a bold plan to transform Intel’s business to manufacture chips for other companies in addition to its own, becoming a foundry. But Intel’s overall products revenue continued to decline, and investors fretted over the significant capital expenditures needed for such massive chip production, including constructing a $20 billion dollar factory complex in Ohio.

Last fall, after a disappointing earnings report, Intel appeared to be for sale, and reportedly drew interest from rival companies including Qualcomm. Analysts assessed the possibility of Intel spinning off its foundry division or selling its products division — including server and PC chips — to a rival.

In AI, Intel has gotten trounced by Nvidia, whose graphics processing units (GPUs) have become the chip of choice for developers over the past few years.

In January, Intel issued a weak forecast even as it beat on earnings and revenue. The company pointed to seasonality, economic conditions and competition, and said clients are digesting inventory. The prospect of tariffs was adding to the uncertainty, Zinsner said.

Intel said that Zinsner will return to his previous role of CFO. Holthaus will remain in charge of Intel Products.

Intel was removed from the Dow Jones Industrial Average in November and was replaced by Nvidia, reflecting the dramatic change of fortune in the semiconductor industry. Intel shares lost 60% of their value last year, while Nvidia’s stock price soared 171%. At Wednesday’s close, Intel’s market cap was $89.5 billion, less than one-thirtieth of Nvidia’s valuation.

WATCH: Intel appoints Lip-Bu Tan as CEO

Intel appoints Lip-Bu Tan as CEO

Continue Reading

Technology

Shares of iRobot tank 30% after Roomba maker raises doubt about its survival

Published

on

By

Shares of iRobot tank 30% after Roomba maker raises doubt about its survival

Roomba vacuums by iRobot are displayed at Best Buy store on January 19, 2024 in San Rafael, California. 

Justin Sullivan | Getty Images

Shares of iRobot plunged more than 30% on Wednesday after it said there is “substantial doubt” about its ability to stay in business.

The Roomba maker’s financial outlook has darkened since Amazon abandoned its planned $1.7 billion acquisition of the company in January 2024, citing regulatory scrutiny. Since then, iRobot has struggled to generate cash and pay off debts.

Massachusetts-based iRobot has been restructuring since the Amazon deal plunged into uncertainty. The company has laid off 51% of its workforce since the end of 2023, and iRobot has looked to reignite revenue growth by overhauling its product lineup. The company on Tuesday launched eight new Roombas in the hopes of “better positioning iRobot as the leader in the category that we created,” CEO Gary Cohen said in a statement.

“There can be no assurance that the new product launches will be successful,” iRobot said in its Wednesday earnings statement, citing limited consumer demand, tariff uncertainty and heightened competition.

“Given these uncertainties and the implication they may have on the company’s financials, there is substantial doubt about the company’s ability to continue as a going concern for a period of at least 12 months,” iRobot said in its earnings report.

The company’s fourth-quarter revenue sagged 44% year over year to $172 million, missing estimates of $180.8 million, according to FactSet. The Roomba maker posted a net loss of $77.1 million, or $2.52 per share. Excluding a one-time “manufacturing transition charge,” iRobot had a loss of $2.06 a share, exceeding the $1.73 per share projected by analysts surveyed by FactSet.

In July 2023, iRobot took a $200 million loan from the Carlyle Group to fund the company’s operations as a stopgap until the Amazon deal closed. The company amended the loan for a temporary waiver on certain financial obligations, which requires iRobot to pay a fee of $3.6 million.

As part of Wednesday’s report, iRobot said its board has initiated a strategic review of the business and is considering alternatives that could include refinancing its debt and exploring a potential sale. The board hasn’t set a deadline for when its review will conclude, the company said.

Shortly after the Amazon deal fell apart, Amazon CEO Andy Jassy criticized regulators’ approach to its iRobot acquisition. European Union regulators threatened to block the deal, and the Federal Trade Commission in the U.S. was reportedly expected to challenge the acquisition in court.

The proposed merger, which was announced in late 2022, would have allowed iRobot to scale and better compete with its rivals, Jassy said. Several of the fastest-growing robotic vacuum businesses are based in China, such as Anker, Ecovacs and Roborock, all of which have eaten into iRobot’s share of the market.

“We abdicate the acquisition, iRobot lays off a third of its staff, the stock price completely tanks, and now, there’s a real question of whether they’re going to be a going concern,” Jassy told CNBC’s Andrew Ross Sorkin in an interview last April.

Don’t miss these insights from CNBC PRO

Amazon CEO on abandoning iRobot deal due to regulatory hurdles: It's a sad story

Continue Reading

Trending