Amazon lays off 14000 employees with more cuts expected
Amazon has announced plans to lay off approximately 14,000 corporate employees as part of a broader strategy to adapt to the evolving landscape of artificial intelligence (AI). This layoff initiative is intended to streamline operations and prepare the company for the increasing integration of AI technologies.
Details of the Layoffs
The mass layoffs represent about 5% of Amazon’s corporate workforce, which numbers over 350,000 employees. The decision was articulated by Beth Galetti, Amazon’s Senior Vice President of People Experience, in a memo shared on the company’s public platform. Galetti emphasized the necessity for Amazon to operate more efficiently to align with CEO Andy Jassy’s vision of running the company like a startup.
Strategy Moving Forward
- Amazon plans to maintain hiring in key strategic areas despite the layoffs.
- Prioritization will be given to employees whose positions were eliminated.
- The company aims to enhance efficiency and accountability by reducing organizational layers.
Galetti noted that the rapid advancements in AI technology require the company to remain agile. “The current generation of AI is the most transformative technology we’ve seen since the Internet,” she stated. This technological shift calls for an operational structure that enables swift responses to market demands.
Previous Layoffs and Economic Context
This is not the first significant reduction in Amazon’s workforce. Earlier in 2023, the company cut around 27,000 jobs across various sectors, citing a challenging global economic climate. Andy Jassy had previously mentioned that efficiency gains from AI might ultimately lead to a smaller workforce.
The ongoing layoffs come amidst a cautious US job market, particularly affecting younger tech professionals. While there are concerns about the potential of generative AI to replace human roles, experts suggest that many fears are not strongly supported by empirical research.
This developing situation underscores the need for adaptability in the tech industry as companies like Amazon navigate the transition toward increased automation and AI integration.
