Amazon Set to Announce Major Corporate Job Cuts Next Week, Sources Reveal
Amazon is poised to announce significant corporate job cuts next week, impacting nearly 30,000 workers. This decision has drawn attention as it reflects the company’s ongoing efforts to streamline its operations.
Details on Amazon’s Job Cuts
According to sources familiar with the matter, Amazon plans to initiate a second round of layoffs as part of its strategy to reduce its corporate workforce by approximately 10%. This follows a prior reduction of about 14,000 jobs in October.
Scope of Affected Departments
- Amazon Web Services (AWS)
- Retail
- Prime Video
- Human Resources (People Experience and Technology)
The exact number of layoffs is not confirmed, but it is expected to be comparable to the October cuts. The job reductions are anticipated to begin as soon as Tuesday, although specific details may evolve.
Reasons Behind the Layoffs
Initially, the job cuts were linked to advancements in artificial intelligence. An internal letter from Amazon claimed that AI technology is transforming how companies operate. However, CEO Andy Jassy later clarified that the layoffs were driven by organizational culture rather than financial concerns or AI developments.
Jassy indicated that Amazon’s corporate structure had grown increasingly bureaucratic. This excess has led to more layers of management, prompting the need for workforce reduction to create a more agile organization.
Implications for Employees
These anticipated layoffs would represent the largest reduction in Amazon’s 30-year history. Although the total figure of 30,000 is a small fraction of Amazon’s overall workforce of 1.58 million, it constitutes a significant segment of its corporate staff.
In October, affected employees received assurances that they would remain on the payroll for 90 days, during which they could seek new roles within Amazon or explore external job opportunities. This grace period is set to conclude shortly.
As companies increasingly leverage AI to enhance efficiency, Amazon remains at the forefront of this trend. The firm showcased its latest AI technologies during its AWS cloud computing conference last December.
The forthcoming announcement from Amazon will clarify the extent of the layoffs and their strategic implications for the company moving forward.
