Amazon to axe 18,000 workers as more US tech firms cut jobs

The jobs purge sweeping US tech firms has escalated as Amazon expanded staff-cutting plans to affect more than 18,000 workers and the software maker Salesforce said it would axe 8,000 employees.

The job cuts represent a swift about-turn for the retailer that recently doubled its basic pay ceiling to compete more aggressively for talent.

Salesforce, meanwhile, said it was laying off about 8,000 employees, or 10% of its workforce.

Salesforce workers who lose their jobs would receive nearly five months of pay, health insurance, career resources and other benefits, according to the company. Amazon said it was also offering a separation payment, transitional health insurance benefits and job placement support.

The CEO of Meta Platforms, Mark Zuckerberg, also acknowledged he misread the revenue gains that Meta, the owner of Facebook and Instagram, was reaping during the pandemic when he announced in November that his company would lay off 11,000 employees, 13% of its workforce.

Shares in Tesla have also fallen in the past year owing to a combination of factors, including fears over demand from the Covid-hit Chinese market and its CEO, Elon Musk, being distracted by his $44bn acquisition of Twitter.

Associated Press, Reuters and Agence France-Presse contributed to this report