Amazon Owned Online Shoe Retailer Takes Downsizing Heat Next

• Amazon.Com, Inc (NASDAQ: AMZN) gradually disassembled Tony Hsieh’s version of Zappos more than two years after the renowned entrepreneur’s demise.

• Zappos laid off more than 300 employees last month, or about 20% of the Las Vegas-based company’s workforce, the Wall Street Journal reports.

• The Zappos cuts came from broader layoffs at Amazon that are likely to eliminate more than 18,000 employees.

• Hsieh was the CEO of Zappos from its origins as an online shoe retailer in the early 2000s, presided over its sale to Amazon in 2009 for $1.2 billion, and continued to operate it autonomously until shortly before his November 2020 death at the age of forty-six.

• Tyler Williams, a longtime Zappos executive and Hsieh’s right-hand man for many years, left the company during the recent round of layoffs, WSJ writes.

• Some of the recent cuts at Zappos included customer-service representatives.

• A Zappos spokeswoman, Laura Davis, said Zappos continues to operate independently.

• In early January, CEO Andy Jassy said he expects the downsizing to help the company pursue its long-term opportunities with a more robust cost structure.

• Amazon’s Devices and Services group, known for the Alexa digital assistant and Echo smart speakers, were the hardest hit as the downsizing began in 2022.

• Price Action: AMZN shares traded higher by 0.01% at $97.62 in the premarket on the last check Monday.

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