What happened
It was a fairly eventful Hump Day for Amazon (AMZN 0.87%), and by the end of it the company's stock price had slumped by 0.6%. On one hand, investors were cheered by news that the giant retailer is making good on its promise to save costs -- albeit in the form of job cuts. On the other, they were dismayed about news of a government agency's worker safety allegations.
So what
Reuters reported Wednesday morning that Amazon will enact job cuts to its workforce in the U.S., Canada, and Costa Rica by the end of the day. Citing an internal company memo to staff it had seen, the news agency added that these are part of an announced plan for the retailer to dismiss 18,000 workers in an effort to reduce costs.
While Amazon is still wildly successful, its margins in the challenging retail space have always been thin.
Lately, these have come under pressure due to inflation, while consumers and businesses both fret about the potential for the economy to slow down in the coming months.
NASDAQ: AMZN
Key Data Points
Now what
On the subject of Amazon workers, Reuters also reported Wednesday that a Department of Labor division issued citations against the company over safety at some of its workplaces. The move followed inspections at three Amazon facilities in New York, Illinois, and Florida.
According to Labor's Occupational Safety and Health Administration (OSHA), three warehouse inspections revealed that Amazon employees were at relatively high risk of sustaining lower back and other musculoskeletal injuries on the job. OSHA added that they frequently lift heavy packages in awkward postures as part of their job, a danger compounded by the long shifts they can work.
