Amazon is planning to lay off as many as 30,000 corporate employees, beginning tomorrow, Reuters reported citing sources. The cuts would total nearly 10% of the company’s corporate jobs. The tech giant has been cutting costs since growth slowed after the pandemic. Recently, Amazon CEO Andy Jassy said in a blog post to employees that efficiency gains from artificial intelligence would allow the company to eventually have a reduced human workforce. This is the largest workforce reduction by Amazon since 2022.
The cuts come as the US job market has showed warning signs for months, especially for young tech workers and amid widespread concerns that generative AI could eventually replace many human workers.
ALSO READ: Comet 3I/ATLAS's bizarre behaviour sparks global alarm: Is the mysterious Manhattan-sized interstellar object a ‘black swan event’? What we know
A draft email intended for affected employees states that Amazon is cutting jobs “following a thorough evaluation of our organization, priorities, and future areas of focus.” The document also outlines a severance package offering full pay and benefits for a period of 90 days, reports Business Insider.
Various teams within Amazon, including human resources and retail, will be affected, the people familiar said, adding that thousands of employees are likely to lose their jobs. According to the Reuters report, the job cuts in Amazon would affect Amazon's HR and devices teams. Fortune previously reported that Amazon could cut up to 15% of its HR staff. Amazon has declined to comment publicly on the planned layoffs despite multiple media requests
ALSO READ: Comet 3I/ATLAS is the largest, fastest-moving, oldest object ever seen: Can probes catch the tail of Manhattan-sized space visitor?
Amazon underwent big changes
Amazon CEO Andy Jassy has brought big changes for the company this year, resting a hardcore culture that existed when Amazon was a smaller company. He has cut multiple layers of management, cracked down on bureaucracy, imposed strict cost controls, revamped performance metrics and compensation systems, and ordered most corporate employees to return to the office five days a week.
It’s not the first round of massive layoffs for the tech giant. In 2023, the company cut 27,000 workers in its human resources department, Amazon Stores, Amazon Web Services and other divisions. At the time, Jassy attributed the job cuts to a worsening global economic outlook.
In June, Jassy told employees that efficiency gains from AI would reduce the company's workforce. Amazon also froze the hiring budget for its big retail business earlier this year. And the cloud business, Amazon Web Services, saw layoffs in July.
“Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company,” he wrote in a companywide email, also published on Amazon’s corporate blog.
The cuts come as the US job market has showed warning signs for months, especially for young tech workers and amid widespread concerns that generative AI could eventually replace many human workers.
ALSO READ: Comet 3I/ATLAS's bizarre behaviour sparks global alarm: Is the mysterious Manhattan-sized interstellar object a ‘black swan event’? What we know
Were Amazon managers informed before the layoffs?
According to a report in Business Insider, Amazon managers were warned recently to prepare for job cuts this week, people familiar with the matter told the news publication. The move is expected to be announced on Tuesday, and will impact employees in the US, the UK, and Canada, according to recent internal messages sent to Amazon managers.A draft email intended for affected employees states that Amazon is cutting jobs “following a thorough evaluation of our organization, priorities, and future areas of focus.” The document also outlines a severance package offering full pay and benefits for a period of 90 days, reports Business Insider.
Various teams within Amazon, including human resources and retail, will be affected, the people familiar said, adding that thousands of employees are likely to lose their jobs. According to the Reuters report, the job cuts in Amazon would affect Amazon's HR and devices teams. Fortune previously reported that Amazon could cut up to 15% of its HR staff. Amazon has declined to comment publicly on the planned layoffs despite multiple media requests
ALSO READ: Comet 3I/ATLAS is the largest, fastest-moving, oldest object ever seen: Can probes catch the tail of Manhattan-sized space visitor?
Amazon underwent big changes
Amazon CEO Andy Jassy has brought big changes for the company this year, resting a hardcore culture that existed when Amazon was a smaller company. He has cut multiple layers of management, cracked down on bureaucracy, imposed strict cost controls, revamped performance metrics and compensation systems, and ordered most corporate employees to return to the office five days a week.It’s not the first round of massive layoffs for the tech giant. In 2023, the company cut 27,000 workers in its human resources department, Amazon Stores, Amazon Web Services and other divisions. At the time, Jassy attributed the job cuts to a worsening global economic outlook.
In June, Jassy told employees that efficiency gains from AI would reduce the company's workforce. Amazon also froze the hiring budget for its big retail business earlier this year. And the cloud business, Amazon Web Services, saw layoffs in July.
“Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company,” he wrote in a companywide email, also published on Amazon’s corporate blog.
