Amazon, the undisputed giant of online retail, is reportedly set to slash 30,000 jobs starting next week in a bold pivot fueled by artificial intelligence advancements. This second-phase layoff spree targets inefficiencies amid AI’s rapid integration.
Prime targets include teams in AWS, HR, Prime Video, and retail operations, where redundancies are being culled. It builds on October’s 14,000 dismissals, fulfilling the company’s announced 30,000-job trim.
Reuters, quoting insiders, anticipates a similar volume in this round. The company remains silent on the matter for now.
Back in October, an internal communication tied the cuts to AI’s explosive growth, dubbing it a game-changer on par with the internet’s advent, enabling unprecedented speed in product development and operations.
CEO Andy Jassy later nuanced this during earnings discussions, rejecting pure financial or AI motives. Instead, he blamed a bloated organizational structure: ‘You end up with way more people and many more layers,’ hindering agility.
This will eclipse Amazon’s previous record of 27,000 layoffs in 2022, though it barely dents the 1.5 million employee base built over three decades.
Support for those impacted includes 90 days of continued salary, with options to hunt for new roles inside or outside the firm.
Echoing broader industry sentiments from Davos, tech executives emphasized that AI augments rather than obliterates jobs, automating tasks to evolve work practices fundamentally.