Amazon Inc. is postponing a hiring process in its advertising division. These actions point to cuts in the world's largest e-commerce platform’s spending due to the sales slowdown.
The company announced a hiring freeze on Tuesday, Nov. 1. Thus, Amazon would continue to hire employees for previously posted vacancies, but would stop creating new positions in the advertising department.
Corporate representatives said that there are still a number of employees needed to fill previously placed vacancies. In fact, Amazon consists of multiple businesses, being at different stages of development. The company plans to adjust its existing hiring strategies there.
The decision to leave the advertising division headcount unchanged demonstrates Amazon's attempt to make more profits in the coming quarter. The company's chief financial officer, Brian Olsavsky, noted that the corporation is going to keep investing in its advertising division, along with Amazon Web Services' cloud computing department. Other cost cutting ways are to be found.
Revenue from Amazon's advertising business reached $9.55 billion in the third quarter. That was 25% higher than last year's results.
In October, the company had already suspended hiring for corporate positions in its retail business. Amazon also froze several projects and cut funding for some pilot programs in order to reduce costs.