Amazon Faces Significant Layoffs, 14,000 Jobs Threatened
Amazon is poised to implement another significant round of layoffs, potentially affecting around 30,000 employees. This move follows a wave of job cuts that began in October, which saw 14,000 workers let go. According to sources familiar with the situation, the upcoming layoffs are expected to commence as early as next Tuesday.
Impact on Amazon Employees
These layoffs will primarily target positions within various departments, including:
- Amazon Web Services
- Retail
- Prime Video
- People Experience and Technology
In October, Amazon’s workforce saw a reduction of approximately four percent. The company aims to manage costs amid increasing investments in artificial intelligence. Employees affected by these cuts will be granted 90 days to seek new roles within the organization, as outlined by Beth Galetti, Amazon’s senior vice president for People Experience and Technology.
Current Workforce Statistics
Amazon currently employs about 350,000 corporate workers among a total workforce of approximately 1.56 million. The firm has been on a cost-cutting trajectory since Andy Jassy became CEO in 2021, as he noted that generative AI could further reduce the corporate workforce in the coming years.
Recent Investments in AI and Infrastructure
Amid these layoffs, Amazon is also making substantial investments in technology. The company has allocated $10 billion towards the development of a new campus in North Carolina, aiming to strengthen its cloud computing capabilities. In addition, Amazon has committed similar amounts to data center initiatives in:
- Mississippi
- Indiana
- Ohio
Broader Context of Job Cuts
The layoffs at Amazon are part of a broader trend in the tech and retail sectors, with many companies scaling back after workforce expansions during the pandemic. In 2023 alone, Amazon cut 27,000 jobs over a two-month period, marking it as one of the largest series of layoffs in the company’s history.
Despite these cuts, recent U.S. labor market data indicates historically low levels of layoffs. The Labor Department reported that applications for unemployment benefits rose slightly to 200,000, remaining below expectations, suggesting ongoing stability in the job market.
This situation is evolving, and further updates will be provided as more information becomes available.
