Amazon is closing all but one of its U.S.-based customer call centers in a bid to cut costs, as the ongoing economic slump continues to impact the tech sector.
The retailer has been seeking to reduce expenses as revenue sales growth slows amid rising inflation and economic uncertainty. This year, U.S. online sales will increase 9.4% to $1 trillion, the first time growth has slipped into the single digits, according to Insider Intelligence. The cost-cutting comes after Amazon quickly expanded its warehouses and logistics operations when consumer demand jumped during the early stages of the pandemic.
The pandemic also forced companies to embrace remote work for customer service roles and many employees are resisting efforts to return to offices. Offering work-from-home will help Amazon recruit employees in an industry with high turnover. Its cloud computing division sells Amazon Connect software that helps companies create remote customer service networks.
According to the source who spoke to Bloomberg, the facilities that amazon plans to shut down include locations in Kennewick, Washington; Lexington, Kentucky, and Phoenix, Arizona. The tech giant’s cost-cutting decisions come amid a wider economic slump. Other tech companies have also been affected — like Facebook, which recently announced a
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