Amazon is gearing up for another big round of layoffs. This time, about 14,000 corporate jobs are on the chopping block, starting next week. This will mark the second major layoff since October and bring the total job cuts to around 30,000—the most significant in the company’s history.
Previously, Amazon reduced around 14,000 positions in October. The upcoming layoffs will impact teams in various areas, including Amazon Web Services (AWS), retail, Prime Video, and human resources. That’s nearly 10% of Amazon’s 350,000 corporate employees.
When the October layoffs first happened, many speculated they were linked to the rise of artificial intelligence. However, CEO Andy Jassy clarified that the real issue is rooted in company culture. He pointed to excessive bureaucracy as a major concern, stating that the cuts aim to make the organization more agile. This reflects a shift in how the company communicates its strategy and highlights ongoing challenges in its restructuring efforts.
Despite the layoffs, Amazon’s overall business appears strong, with a global workforce of 1.58 million, most of whom work in warehouses and fulfillment centers. In an internal memo, Beth Galetti, Senior Vice President of Human Resources, acknowledged the confusion surrounding these job cuts, mentioning the need for a leaner organization to stay competitive.
Past layoffs prompted Amazon to provide support for affected employees, including severance pay and career counseling. Similar help will be available for those impacted in the upcoming cuts.
Interestingly, the company’s return-to-office policy is among the strictest in the tech industry. Jassy has implemented a five-day in-office requirement, which hasn’t yet led to the expected increase in voluntary departures.
Overall, Amazon’s focus on streamlining operations reflects broader trends in the tech industry, especially as companies navigate the balance between innovation and efficiency. In a recent survey by Gartner, 70% of organizations indicated they were prioritizing efficiency this year, showing that Amazon isn’t alone in rethinking workplace structures.
For more insights into corporate restructuring and employee support strategies, check out this report.
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