Amazon has revealed a plan to eliminate approximately 16,000 jobs globally, as part of an ongoing restructuring initiative that commenced in October. With this latest reduction, the company's total job cuts will amount to around 30,000 positions.
These layoffs aim to streamline operations, minimize management layers, and enhance overall efficiency. Following extensive hiring during the pandemic, the company is now realigning its structure as artificial intelligence (AI) integration accelerates throughout its operations.
The layoffs will affect various sectors, including Amazon Web Services (AWS), retail sectors, Prime Video, and human resources.
Beth Galetti, Amazon’s senior vice president of people experience and technology, emphasized that the business is focused on reducing bureaucratic obstacles and empowering teams. She noted that while significant layoffs are not intended to become commonplace, structural adjustments will be ongoing.
CEO Andy Jassy has previously highlighted that AI applications will automate numerous functions, potentially leading to a leaner corporate workforce in the future. Furthermore, Amazon is heavily investing in robotics for warehouses and AI-driven data center technology to boost efficiency and enhance its cloud operations.
These job losses account for a minor segment of Amazon's overall workforce, which exceeds 1.5 million employees, the majority of whom are engaged in warehouse and fulfillment activities.
Amazon is expected to release its quarterly earnings report next week, which should shed further light on its financial state and AI-related investments.
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