WEB DESK: Amazon announced on Tuesday that it will cut around 30,000 jobs as part of its ongoing plan to reduce costs and streamline operations.
In a blog post, the company said the move aims to make Amazon “leaner and less bureaucratic” while focusing investments on major growth areas, including generative artificial intelligence (AI).
“AI is the most transformative technology since the Internet,” said Beth Galetti, Amazon’s Senior Vice President for People Experience and Technology. “We believe we need fewer layers and more ownership to move faster for our customers and business.”
The cuts could become Amazon’s largest round of corporate layoffs to date. Reuters reported that up to 30,000 jobs may ultimately be affected.
Amazon, the world’s second-largest private employer, has 1.54 million employees globally, most of them in warehouse operations. Its 350,000 corporate and tech staff represent the segment being reduced by about 4%.
The company said layoffs will continue into next year, even as it continues to hire in “key strategic areas.”
Across industries, from tech and banking to retail and auto, companies are adjusting their workforce sizes due to the growing impact of generative AI. Many firms say AI allows them to operate more efficiently with fewer employees.
Amazon CEO Andy Jassy has previously said the company will “need fewer people doing some of today’s jobs and more doing new ones” as it embraces AI. Since taking over from Jeff Bezos in 2021, Jassy has led multiple cost-cutting measures.
Between 2022 and 2023, Amazon laid off about 27,000 employees. The company expanded rapidly during the pandemic to meet surging e-commerce demand but has since shut down less profitable units while pledging to invest $100 billion in AI this year.
Amazon also faces increasing pressure to keep pace with rivals in the cloud and AI sectors. Jassy has been pushing to “flatten” corporate structures and re-establish Amazon’s culture as the “world’s largest startup.”
The company will report its third-quarter earnings on Thursday after market close.
