This week, Amazon laid off 14,000 employees, with some receiving the news through a barrage of impersonal text messages, according to a recent report.
As the company initiated job cuts, affected workers were sent two text messages early Tuesday morning, as revealed by sources familiar with the situation. These messages advised them to check their personal and work emails prior to coming in—essentially to avoid arriving only to discover their access badges no longer worked.
Furthermore, Amazon issued a second text instructing employees to contact the help desk if they hadn’t received an email concerning their jobs.
The company didn’t respond to requests for comment promptly.
Beth Galetti, Amazon’s HR chief, mentioned in a memo that these layoffs are part of an ongoing effort to “reduce bureaucracy” across the company’s white-collar staff.
“This involves cuts in some areas while expanding in others, ultimately resulting in around 14,000 roles being eliminated,” she explained.
It seems managers were instructed on Monday to prepare for discussions with employees let go as a result of the email notifications, as reported by sources. Multiple teams were impacted, notably those in HR, devices, services, and operations.
Employees affected might have the option to search for new positions within the company.
If not, severance packages, outplacement support, and health benefits will be provided, as stated in Galetti’s memo.
Looking ahead, the Seattle-based company intends to eliminate a total of 30,000 corporate positions, which represents about 9% of its office-based workforce globally, insiders revealed.
Additionally, two sources told The New York Times that more cuts are anticipated in January, following the busy holiday season.
Since Andy Jassy took over as CEO in 2021, Amazon has seen significant job reductions, totaling tens of thousands.
In June, Jassy urged his team to embrace automation, suggesting it could help “reinvent the company” and lead to new job opportunities, yet it may also mean employing fewer people for certain roles.
Amazon already utilizes robots and automation across its warehouses.
The New York Times indicated that the firm plans to refrain from hiring over 600,000 warehouse staff in the coming years due to technological advances, even while anticipating doubled product sales within that timeframe. Amazon labeled this assertion as a “misleading portrayal” of its strategy.
In its latest quarter, Amazon reported $18 billion in profit, boosting investments in AI data centers. This year, its capital expenditures—including data centers—are expected to surpass $120 billion, a nearly 50% increase from the previous year.
Galetti addressed concerns in her memo about why she would choose to cut her own role given the company’s strong performance, stating that “the world is changing rapidly.” To seize AI opportunities, Amazon is shifting its focus toward more streamlined operations with less hierarchical structure.
