American tech and e-commerce giant Amazon has confirmed a second wave of job cuts. The company will lay off an additional 16,000 employees worldwide. This decision comes as the company works to adjust its head count after a period of aggressive hiring during the digital boom of Covid-19 period. Combined with cuts made late last year, Amazon’s total job reduction reaches about 30,000 corporate positions in just three months, marking the largest layoffs in the company’s 30-year history.
These layoffs are not just about cost cutting but it also reflect a significant change in Amazon’s operational strategy. CEO Andy Jassy has told that the company is aiming for a leaner structure, focusing on long-term profit rather than rapid, unchecked growth.
A major factor behind the shift is the integration of Generative AI tools. As Amazon automates more of its administrative and coding tasks, the need for a large middle management and manual human resource processing has gone down. By applying AI in areas like supply chain logistics and customer service, the company hopes to improve efficiency while reducing the number of employees needed to support its vast infrastructure.
The layoffs will impact several important areas of Amazon:
Amazon Web Services (AWS): This was once seen as “bulletproof,” the cloud division is experiencing slower growth as companies cut back on their IT spending.
Retail and Prime Video: As consumer spending habits change and the streaming market becomes more crowded, The company is cutting back on its entertainment and e-commerce work force.
Human Resources With a hiring freeze in effect and AI-driven recruitment tools taking over, the “People, Experience, and Technology” division is facing a lighter workload.
The tech sector as a whole is experiencing a “hangover” from the pandemic period. In 2020 and 2021, Amazon nearly doubled its workforce to handle the surge in online shopping. However, with the global economy facing inflation and a return to in-person shopping, that growth has proven unsustainable.
In a memo to staff, Jassy acknowledged that while the decision was tough, it was essential for the company’s future. Affected employees are expected to receive severance packages, transitional health insurance benefits, and help finding new jobs.
(input from agency)
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Syed Ziyauddin is a media and international relations enthusiast with a strong academic and professional foundation. He holds a Bachelor’s degree in Mass Media from Jamia Millia Islamia and a Master’s in International Relations (West Asia) from the same institution.
He has work with organizations like ANN Media, TV9 Bharatvarsh, NDTV and Centre for Discourse, Fusion, and Analysis (CDFA) his core interest includes Tech, Auto and global affairs.
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