Amazon to lay off approximately 14,000 corporate employees as part of its focus on artificial intelligence advancements.
Amazon has announced a substantial reduction in its global corporate workforce, diminishing it by approximately 14,000 jobs. This initial wave of layoffs is part of a broader strategy intended to adapt to the evolving technology landscape and to address over-hiring that occurred during the pandemic’s peak. The company’s restructuring is expected to continue into the following year, with projections indicating that up to 30,000 positions could be eliminated across various divisions throughout this process.
The job cuts stem largely from Amazon’s increasing reliance on artificial intelligence (AI) to streamline operations. CEO Andy Jassy acknowledged in June that the implementation of AI tools would likely lead to reductions in corporate positions, particularly those involving routine tasks. As the company seeks to enhance efficiency and manage operational costs more effectively, the layoffs provide insight into the potential impacts of AI on employment structures within large corporations.
At the close of last year, Amazon boasted around 1.56 million full-time and part-time employees, with its corporate segment comprising about 350,000 individuals. Following the notifications sent Tuesday, workers were informed through emails that their roles had been eliminated. The correspondence outlined the termination of their employment and included an invitation to meet with Human Resources over a video call, providing affected employees with options to explore new roles internally within a 90-day period, emphasizing the company’s intent to prioritize these candidates in future hiring endeavors.
Notably, departments experiencing cuts include key areas such as devices, advertising, Prime Video, human resources, and Amazon Web Services (AWS). While the specific details regarding the full scope of departments affected remain unclear, Amazon has indicated that it will continue to recruit in certain sectors even as it reduces its workforce in others.
The company’s stock performed modestly well in premarket trading, albeit reflecting a 3.5% increase for the year, which is comparatively low among other major technology firms. Analysts and industry leaders are observing these developments closely, particularly as Amazon forecasts capital expenditures approaching 8 billion for the year, much of which is earmarked for advancing its AI capabilities and cloud infrastructure.
In a related political context, U.S. Senator Bernie Sanders has publicly urged Amazon founder Jeff Bezos to explain the implications of automation for job losses, suggesting that as many as 500,000 positions could eventually be at risk as warehouse operations move toward greater mechanization. Additionally, inquiries have been raised by U.S. senators regarding Amazon’s status as the largest employer utilizing H-1B visas in tandem with its recent layoffs, raising questions about the company’s workforce strategies in an ever-evolving technological landscape.
As Amazon prepares for its upcoming third-quarter earnings report, its ongoing adjustments amid significant technological shifts reflect broader trends within the corporate landscape, where AI advancements increasingly influence staffing and operational decisions.
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