Amazon is slashing another 16,000 corporate jobs, its second major layoff round in three months. The tech giant attributes these cuts to the planned use of generative AI and a strategic reduction of its pandemic-inflated workforce, despite strong financial performance.
Amazon is cutting approximately 16,000 corporate jobs in its second wave of mass layoffs in three months. The company explicitly states its intention to utilize generative artificial intelligence to replace corporate workers and is also scaling back a workforce that significantly expanded during the pandemic. Beth Galetti, a senior vice president, noted the company's efforts to reduce organizational layers, increase ownership, and remove bureaucracy. This latest reduction follows 14,000 job cuts in October, bringing the total to 30,000 in recent months. While specific impacted business units or locations were not disclosed, U.S.-based staff will be given 90 days to seek new internal roles, with severance pay, outplacement services, and health insurance benefits offered to those who are unsuccessful or do not wish to find a new position. Despite the layoffs, Amazon plans to continue hiring in strategic areas critical for its future. CEO Andy Jassy has aggressively cut costs and previously anticipated AI's role in reducing the corporate workforce. Notably, these cuts are not driven by financial instability, as Amazon recently reported a nearly 40% jump in profits to $21 billion and revenue soaring to over $180 billion. Jassy previously cited 'culture' and rapid overgrowth as reasons for past reductions. This trend is mirrored across the tech and retail sectors, with companies like UPS announcing up to 30,000 operational job cuts and Pinterest planning to lay off under 15% of its workforce, partly due to a pivot towards AI.
