Amazon is set to make significant layoffs, potentially affecting up to 30,000 corporate roles. This move, reported by Reuters, is part of a broader strategy to reduce its workforce after a surge in hiring during the COVID-19 pandemic.
These layoffs could represent about 10% of Amazon’s 350,000 corporate employees. However, the company’s total headcount, including warehouse workers, exceeds 1.5 million globally. If these cuts go through, it will be the largest layoff wave at Amazon since early 2023, where around 27,000 jobs were eliminated. Training sessions for managers on how to communicate this news to affected staff are scheduled for Monday, with notifications expected to be sent out on Tuesday.
In addition to these layoffs, Amazon previously reorganized its audio division, letting go of more than 100 workers while streamlining its Wondery studio. Earlier in 2024, the company made further cuts across Prime Video and Amazon Studios during a business review.
The timing of these layoffs comes as Amazon explores acquisition opportunities, particularly with Warner Bros. Discovery, which has recently put itself up for sale.
Interestingly, these layoffs aren’t explicitly tied to advancements in artificial intelligence. However, CEO Andy Jassy has mentioned that the rise of generative AI could lead to fewer roles for certain current jobs while creating opportunities for new positions. As technology evolves, firms like Amazon must adapt their workforce accordingly.
It’s essential to note that these changes aren’t unique to Amazon. Many companies in various sectors are reassessing their workforces due to economic shifts and technological advancements. According to a recent report by the Bureau of Labor Statistics, employment in tech fields is expected to grow by about 13% over the next decade, indicating a shift in job demand.
In summary, Amazon’s planned layoffs reflect broader trends in the job market as companies reevaluate their structures and address the impact of technology.
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