Amazon and Salesforce job cuts are warning signs for shares

Amazon last week announced more than 18,000 job cuts.

Tens of thousands of tech sector job cuts may not be enough to reverse the collapse in share prices, given the looming economic downturn could slash companies’ revenues far more than the cost savings they make via layoffs.

Amazon last week announced more than 18,000 job cuts, the biggest reduction in its history, while Salesforce said it would cut about 10% of its workforce, adding to the toll in a sector that has been scrabbling for months to retrench. Industry tracker Layoffs.fyi estimates 18,300 employees have been let go this year, following the loss of 154,000 jobs in 2022.