Amazon Axes Over 250 Peninsula Workers: Report

SUNNYVALE, CA — Amazon’s mass layoffs announced earlier this week will include 263 Peninsula workers, KRON reports.

The online retail behemoth on Monday announced plans to lay off approximately 10,000 employees.

The Sunnyvale layoffs include 129 engineers, according to the report.

The Amazon layoffs are the latest in Silicon Valley’s worst bloodbath since the dot com bust.

The Federal Reserve’s efforts to contain inflation by raising interest rates has hit the tech sector especially hard according to Josh White, an assistant professor of finance at Vanderbilt University.

Unlike other industries, Silicon Valley companies have few other options other than reducing staff when the cost of borrowing money becomes prohibitive, White told The Washington Post.

“For them to make money, sometimes it takes years,” White told the news outlet.

“I think we’re seeing an unwinding now that’s typical of cost cutting measures when we see a slowing economy. Their value comes from their intellectual property which is patents, trade secrets or people.

“You can’t cut costs on patents. Trade secrets are what they are. That just leaves people. That’s where you have to cut costs.”

Read more at KRON