Amazon Unveils Plans to Slash 14,000 Corporate Jobs as Part of Broad Cost-Cutting Effort
In a move that underscores the seismic shift in the retail landscape, Amazon has confirmed plans to lay off nearly 14,000 corporate workers as part of an ambitious cost-cutting drive. The Seattle-based giant, which had been fueling its hiring spree during the pandemic, is now seeking to slim down its operation and reduce bureaucracy.
The news comes just days after reports emerged that Amazon was poised to cut up to 30,000 corporate jobs, a move that would be the largest in the company's history. According to sources familiar with the matter, the layoffs are part of a broader effort to undo the vast recruitment drive Amazon embarked on during the height of the pandemic, which unleashed an extraordinary surge in demand for online shopping.
At the heart of the cost-cutting drive is the recognition that artificial intelligence (AI) is increasingly capable of performing tasks previously carried out by humans. In a memo to employees, senior vice-president Beth Galetti wrote that "the reductions we're sharing today are a continuation of our work to get stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we're investing in our biggest bets and what matters most to our customers' current and future needs."
Galetti's comments serve as a stark reminder that the world is changing at an unprecedented pace, with AI agents and generative AI systems like chatbots poised to replace many jobs. While Amazon has been trimming smaller numbers of jobs across multiple divisions in recent years, this latest wave of cuts is expected to have far-reaching implications for various teams within the company.
The layoffs represent a small but significant portion of Amazon's sprawling global workforce of 1.55 million employees. However, they will have a profound impact on the roughly 350,000 corporate employees who will be affected. In an effort to mitigate the blow, Amazon is offering support and training to managers of affected teams, including an anonymous complaint line that has already yielded significant results.
As Amazon navigates this uncertain terrain, its shares rose 1.2% on Monday in response to the news. The move underscores the broader trend of internet giants such as Microsoft, Meta, and Alphabet slashing tens of thousands of jobs over the past three years.
The decision is likely to have far-reaching implications for Amazon's operations and future growth prospects. As CEO Andy Jassy noted in a memo to staff earlier this year, AI agents and generative AI systems will require fewer employees in some areas, leading to a reduction in its total corporate workforce.
In a move that underscores the seismic shift in the retail landscape, Amazon has confirmed plans to lay off nearly 14,000 corporate workers as part of an ambitious cost-cutting drive. The Seattle-based giant, which had been fueling its hiring spree during the pandemic, is now seeking to slim down its operation and reduce bureaucracy.
The news comes just days after reports emerged that Amazon was poised to cut up to 30,000 corporate jobs, a move that would be the largest in the company's history. According to sources familiar with the matter, the layoffs are part of a broader effort to undo the vast recruitment drive Amazon embarked on during the height of the pandemic, which unleashed an extraordinary surge in demand for online shopping.
At the heart of the cost-cutting drive is the recognition that artificial intelligence (AI) is increasingly capable of performing tasks previously carried out by humans. In a memo to employees, senior vice-president Beth Galetti wrote that "the reductions we're sharing today are a continuation of our work to get stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we're investing in our biggest bets and what matters most to our customers' current and future needs."
Galetti's comments serve as a stark reminder that the world is changing at an unprecedented pace, with AI agents and generative AI systems like chatbots poised to replace many jobs. While Amazon has been trimming smaller numbers of jobs across multiple divisions in recent years, this latest wave of cuts is expected to have far-reaching implications for various teams within the company.
The layoffs represent a small but significant portion of Amazon's sprawling global workforce of 1.55 million employees. However, they will have a profound impact on the roughly 350,000 corporate employees who will be affected. In an effort to mitigate the blow, Amazon is offering support and training to managers of affected teams, including an anonymous complaint line that has already yielded significant results.
As Amazon navigates this uncertain terrain, its shares rose 1.2% on Monday in response to the news. The move underscores the broader trend of internet giants such as Microsoft, Meta, and Alphabet slashing tens of thousands of jobs over the past three years.
The decision is likely to have far-reaching implications for Amazon's operations and future growth prospects. As CEO Andy Jassy noted in a memo to staff earlier this year, AI agents and generative AI systems will require fewer employees in some areas, leading to a reduction in its total corporate workforce.
but it makes sense they gotta adapt to the tech changes we're seeing everyone's gonna need new skills anyway 
so hopefully the training and support Amazon's offering will help people pivot into something new 
, dont get me wrong i love the idea of streamlinin the company but is it really necessary to cut so many jobs? 
i mean, they're already the biggest and most successful company in the world why do they need to reduce their workforce that much? 
its just gonna make things harder for the employees who are losin out 
also, what about all the new tech they're developin and investin in? cant they find ways to automate jobs instead of layin people off? 
. i'm not saying humans aren't needed anymore, but can't we find ways to work alongside AI rather than being replaced by it? 
. Will they still have enough human touch to make customers feel valued? Only time will tell... 
, so fingers crossed they make the best of it 