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Amazon plans to cut about 10% of its corporate operations starting Tuesday as part of an internal restructuring, the report said, citing three sources.
The reported layoffs, affecting nearly 30,000 workers, would mark the largest reductions in Amazon operations in the company’s history, surpassing nearly 27,000 positions eliminated in late 2022 and early 2023, according to Laleff tracking site Layista.
Sources told Reuters that Amazon has been working to reduce costs and overspend during the pandemic surge in demand.
The cuts could affect several divisions, including human resources, known as people with knowledge and technology, operations, devices and services and Amazon’s Web services, it is predicted.
Meta cuts 600 jobs amid AI Expansion rollout – as automation replaces human workers
Amazon boxes are seen being placed for delivery in the Manhattan borough of New York City, January 29, 2016. (Mike Segar / Reuters)
The managers of the affected teams were required to complete training on Monday to prepare for communication with employees, after which email notifications were set to go out on Tuesday morning, the sources said, according to Reuters.
Amazon has previously considered several strategies to reduce its workforce, including enforcing a strict Return-to-Office policy, introducing a system that identifies inefficiencies and integrating artificial intelligence, according to artificial intelligence.
Target is eliminating 1,000 jobs, eliminating hundreds of open roles
Employees at Amazon’s office in Bellevue, Washington, on July 18, 2024. (Courtesy of Hingerley/Bloomberg/Getty Images)
Earlier this year, Amazon CEO Andy Jassy launched a plan to reduce the number of executives by creating an anonymous hotline to report inefficiencies, Reuters said. The program generated nearly 1,500 responses and led to more than 450 process changes, Jassy said, according to the release.
A full-time Return-Office command also came into force this year. Amazon may have hoped the stricter policy would prompt some workers to fire voluntarily, reducing headcount without the cost of severance, sources told Reuters. However, this policy reportedly did not produce enough mobility, contributing to a large cycle of layoffs.
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Andy Jassy, Chief Executive Officer of Amazon.com Inc., speaks during a conference in San Francisco, June 8, 2022. (David Paul Morris/Bloomberg/Getty Images)
Jassy said in June that the growing use of intelligence tools is expected to drive the period of job cuts.
“We’re going to need fewer people doing some of the jobs that are still being done today, and more people doing other types of jobs,” Jassy previously said about generative AI.
| It’s teasing | Security | – Last | Answer | change % |
|---|---|---|---|---|
| AmN | Amazon.com inc. | 226.97 | +2.76 |
+ 1.23% |
As of Monday, more than 200 tech companies had eliminated nearly 98,000 positions this year, according to AyOffs.fyi.
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While Intel cut 27,000 employees, Microsoft laid off 15,000 employees, meta cut more than 9,000, meta eliminated nearly 4,000 jobs and Google cut 200 this year.
Amazon did not immediately respond to a request for comment from Fox Business.
FOX Business’ Pilar Arias and Reuters contributed to this report.
