Amazon is set to implement another round of job cuts next week as part of a plan to reduce its workforce by around 30,000 employees, according to sources with knowledge of the situation.
Last October, the company let go of approximately 14,000 white-collar workers, which is about half of what was initially reported. The upcoming layoffs could begin as soon as Tuesday, maintaining a similar scale as the previous year. These insiders requested anonymity due to the confidential nature of Amazon’s strategies.
An Amazon representative chose not to comment on the matter.
Jobs across various divisions including Amazon Web Services, retail, Prime Video, and human resources are expected to be affected, though specifics remain vague. Officials mentioned that these plans could potentially change.
Previous Cuts Tied to AI
The Seattle-based retailer linked the layoffs from October to advancements in artificial intelligence, asserting in an internal communication that this wave of AI represents a monumental shift in technology, enabling companies to innovate at unprecedented speeds.
However, CEO Andy Jassy later clarified during a third-quarter earnings call that the cuts were not primarily about finances or AI. Instead, he pointed to the company’s internal culture, suggesting there’s excessive bureaucracy.
“In the end, there will be considerably more people and more layers than there were before,” he noted.
Jassy remarked earlier this year that he anticipated a gradual decrease in Amazon’s corporate workforce due to efficiencies gained from AI.
To cut costs and lessen reliance on human labor, many firms are increasingly turning to AI for tasks like coding and automating simple processes. At the AWS Cloud Computing Annual Conference last December, Amazon showcased its latest AI advancements.
While the total of 30,000 job cuts is a small fraction of Amazon’s workforce of 1.58 million, it still constitutes nearly 10% of the total headcount, with most employees working in fulfillment centers and warehouses.
This upcoming round of layoffs will mark the largest in Amazon’s three-decade history, following about 27,000 job reductions in 2022.
During the previous cuts in October, affected employees were informed they would continue receiving paychecks for three months, giving them time to seek other opportunities within or outside the company. That period is set to end on Monday.
