Amazon announced on Wednesday that it will be cutting 16,000 jobs globally, marking the second major round of layoffs within three months. This decision comes as the company restructures following pandemic-era over-hiring and seeks to expand the use of artificial intelligence tools.
According to Reuters, this round of job cuts is part of a broader initiative to trim approximately 30,000 corporate roles, impacting workers in Amazon Web Services, retail, Prime Video, and human resources departments. Previously, Amazon eliminated 14,000 white-collar jobs in late October. CEO Andy Jassy emphasized the necessity of reducing excessive bureaucracy by cutting operational levels and minimizing the number of managers.
Beth Galetti, senior vice president of people experience and technology at Amazon, addressed concerns about the potential for ongoing layoffs, stating, “Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan.”
These job cuts highlight the evolving dynamics of the corporate workforce due to advancements in artificial intelligence. Enhanced AI assistants are increasingly capable of performing tasks ranging from routine administrative duties to complex coding challenges, leading to broader adoption across enterprises. Jassy previously noted that the rise of AI tools would likely result in more automation and subsequent job losses.
While the planned cuts represent a small fraction of Amazon's total workforce of 1.58 million employees, they account for nearly 10% of its corporate staff. The majority of Amazon's employees are in fulfillment centers and warehouses. The restructuring trend is not unique to Amazon, as other tech giants like Meta Platforms and Microsoft are also reevaluating their workforce after significant hiring during the COVID-19 pandemic.
Amazon is investing in robotics within its warehouses to enhance packaging and delivery efficiency, further reducing reliance on human labor and cutting costs.