Amazon to Eliminate 30,000 Corporate Jobs Amid Pandemic Overhiring Adjustments
Amazon is set to eliminate up to 30,000 corporate positions in response to overhiring during the pandemic. This decision is part of a broader strategy to reduce expenses and streamline operations.
Job Cuts Overview
The planned reduction represents nearly 10% of Amazon’s corporate workforce. This group consists of approximately 350,000 employees out of the total workforce of 1.55 million. This round of layoffs marks the largest at Amazon since the company cut about 27,000 positions starting in late 2022.
Impacted Divisions
The layoffs will affect various departments within Amazon, including:
- Human Resources (People Experience and Technology)
- Devices and Services
- Operations
Managers from the affected teams underwent training to prepare for employee notifications, which are scheduled to begin this week.
Reasons Behind the Cuts
Amazon CEO Andy Jassy is leading an initiative aimed at decreasing what he calls an excess of bureaucracy. This initiative includes reducing managerial positions and promoting the use of artificial intelligence to automate routine tasks. In a recent update, Jassy highlighted that AI could lead to further staff reductions.
Response Measures
As part of improving operational efficiency, Jassy implemented an anonymous complaint line. This measure has gathered around 1,500 suggestions for process changes, resulting in over 450 modifications already made this year.
Financial Context
The implications of these job cuts coincide with Amazon’s quarterly earnings report, which will be released soon. Earlier reports suggested a potential target of around 15% layoffs within the human resources division.
In financial markets, Amazon shares increased by 1.5%, reaching a price of $227.53. The full impact of the current layoffs will depend on evolving financial priorities within the company.
