By: The Trek News Desk
E-commerce and technology giant Amazon announced on Wednesday that it is laying off 16,000 employees globally, marking the company’s second major round of job cuts within the past three months. The move aims to correct excessive hiring during the COVID-19 pandemic and reshape the organisation in line with its growing focus on artificial intelligence.
Sources familiar with the matter said the layoffs are part of Amazon’s broader plan to eliminate around 30,000 corporate positions. The latest cuts are expected to impact teams across Amazon Web Services (AWS), retail operations, Prime Video, and human resources.
In late October, Amazon had already reduced its workforce by nearly 14,000 white-collar roles. At the time, CEO Andy Jassy emphasised the need to streamline the company by cutting down on bureaucracy, reducing management layers, and improving operational efficiency.
Addressing employees, Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, clarified that the company is not entering a cycle of regular large-scale layoffs. She stressed that the current decision is part of a long-term strategy rather than a recurring pattern of workforce reductions.
Industry analysts say the development highlights the growing impact of AI on corporate workforce structures. Advanced AI tools are increasingly capable of handling tasks ranging from routine administrative work to complex coding, reducing the demand for human involvement in several roles.
Andy Jassy has previously indicated that wider adoption of AI would lead to greater automation of work, which could result in fewer corporate jobs. Similar views were echoed by business leaders at the recent World Economic Forum, where many acknowledged that while some jobs may disappear, new roles linked to emerging technologies are also expected to be created.
Although the planned reduction of 30,000 roles represents a small fraction of Amazon’s total workforce of approximately 1.58 million employees, it accounts for nearly 10 per cent of the company’s corporate staff. The majority of Amazon’s employees continue to work in warehouses and fulfilment centres.
Like several other tech giants, including Meta and Microsoft, Amazon significantly expanded its workforce during the pandemic-driven surge in demand and is now restructuring to adapt to changing market conditions. The company is also investing heavily in robotics across its warehouses to speed up deliveries, improve efficiency, and lower operating costs.
Amazon is scheduled to release its quarterly financial results next week, a development that will be closely watched by investors and market analysts.
Source: News Agencies
