Amazon set to cut thousands more jobs as AI overhaul accelerates

"Amazon is preparing to cut thousands more jobs as part of a sweeping overhaul driven by artificial intelligence and internal restructuring, according to reports. The world's largest retailer is expected to announce a second round of layoffs as soon as next week, following the removal of 14,000 white-collar roles in October. The latest cuts are expected to be of a similar scale, taking Amazon closer to its longer-term goal of shedding around 30,000 positions."

"The company, founded in 1994 by Jeff Bezos, who remains executive chairman and its largest individual shareholder, employs around 1.58 million people globally. While the planned reductions represent a small fraction of its total workforce, they amount to almost 10 per cent of Amazon's corporate staff. According to Reuters, the cuts are expected to affect teams across Amazon Web Services, retail operations, Prime Video and the company's human resources division, known internally as People Experience and Technology. Other business units could also be impacted."

"Amazon previously linked the October job cuts to the rapid adoption of AI, telling staff in an internal memo that the technology represented the most significant shift since the advent of the internet, enabling companies to innovate at unprecedented speed. However, Andy Jassy later played down the idea that the layoffs were primarily driven by cost pressures or AI alone. Speaking during the company's third-quarter earnings call, Jassy said the reductions were more about organisational design."

Amazon plans another large layoff round expected soon, following 14,000 white-collar job cuts in October and moving toward a longer-term reduction near 30,000 positions. The company employs about 1.58 million people globally, and the planned reductions represent a small share of total workforce but nearly 10% of corporate staff. Cuts are expected across AWS, retail operations, Prime Video and People Experience and Technology, with other units potentially affected. Amazon linked prior cuts to rapid AI adoption enabling faster innovation, while CEO Andy Jassy emphasized organisational design and culture as primary drivers and warned AI efficiencies will shrink corporate headcount over time.

Read at Business Matters