Amazon to lay off 30,000 employees in major cost-cutting move
What's the story
Amazon is set to lay off as many as 30,000 corporate employees in a major cost-cutting move. The decision comes after the company overhired during the pandemic's peak demand period. The layoffs will affect nearly 10% of Amazon's corporate workforce and mark its largest job cut since late 2022 when around 27,000 positions were eliminated.
Affected sectors
Layoffs to impact various Amazon divisions
The impending layoffs are likely to affect a range of Amazon divisions, including People Experience and Technology (PXT), operations, devices and services, and Amazon Web Services. Managers of the affected teams have been asked to undergo training on how to communicate with their staff about these changes. The move comes as part of CEO Andy Jassy's efforts to cut down on what he calls excessive bureaucracy at the company.
Automation impact
AI's role in job cuts
Jassy had previously said that the growing use of artificial intelligence (AI) tools could lead to more job cuts by automating repetitive and routine tasks. According to eMarketer analyst Sky Canaves, this latest move from Amazon suggests that the company has started seeing enough productivity gains from AI in its corporate teams to justify a major reduction in force.
Future adjustments
Number of layoffs may change over time
The exact scale of this round of layoffs isn't clear yet. The number could change over time as Amazon's financial priorities evolve. Earlier reports indicated that the human resources division could see a cut of about 15%. A program launched earlier this year to bring employees back into the office five days a week has also contributed to these layoffs, according to people familiar with the matter. Amazon plans to offer 250,000 seasonal jobs this holiday season as part of its staffing strategy.