Amazon to Lay Off Thousands, Targeting 10% of Workforce in Latest Cuts
Evercore ISI senior managing director breaks down his price targets for Amazon and Expedia on ‘Varney & Co.’
Amazon is set to implement significant job cuts, aiming to reduce nearly 10% of its corporate workforce, as reported by Reuters. This move follows an earlier decision to eliminate approximately 14,000 white-collar positions in October. The company is now preparing for a second wave of layoffs, potentially affecting a similar number of employees, with an overall target of around 30,000 jobs. However, the exact scope of these layoffs may still change, according to sources cited by Reuters.
If these cuts are fully realized, they would represent the largest layoffs in Amazon’s history, surpassing the approximately 27,000 jobs the company eliminated in 2022. Reports indicate that the layoffs could commence as early as next week, impacting various departments including Amazon Web Services, retail, human resources (internally referred to as People Experience and Technology), and Prime Video.
AMAZON DIGS DEEP FOR AI GOLD AS COPPER MINE PARTNERSHIP FUELS MASSIVE DATA CENTER EXPANSION
Amazon is preparing to cut thousands of corporate jobs in a broad workforce reduction, according to a report. (Miguel J. Rodriguez Carrillo/Bloomberg via Getty Images / Getty Images)
According to Reuters, Amazon has attributed the October job cuts to the rise of artificial intelligence software. In an internal letter to employees, the company stated, “this generation of AI is the most transformative technology we’ve seen since the internet, and it’s enabling companies to innovate much faster than ever before.”
CEO Andy Jassy had previously indicated that he expected the retailer’s corporate workforce to shrink due to efficiencies gained from AI. However, he later clarified during the company’s third-quarter earnings call that the layoffs were not financially motivated or directly related to AI, but rather a response to excessive bureaucracy. “You end up with a lot more people than what you had before, and you end up with a lot more layers,” Jassy explained.
POPULAR ALCOHOL BRANDS COULD BE FORCED TO SELL OFF INVENTORY AFTER BANKRUPTCY SETBACK
Workers at an Amazon office in Bellevue, Washington, US, on Thursday, July 18, 2024. (Grant Hindsley/Bloomberg / Getty Images)
In an internal message sent in October, Amazon informed employees that they would remain on the payroll for approximately three months while seeking other job opportunities. The company stated, “We’re working hard to support everyone whose role is impacted, including offering most employees 90 days to look for a new role internally (the timing will vary some based on local laws), and our recruiting teams will prioritize internal candidates to help as many people as possible find new roles within Amazon.”
This 90-day window is set to expire on Monday. Additionally, Jassy initiated a program last year aimed at reducing the number of managers within the company. This included creating an anonymous complaint line to identify inefficiencies, which reportedly generated around 1,500 responses and led to over 450 process changes.
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Amazon plans to reduce its corporate workforce by thousands as it streamlines operations and cuts internal bureaucracy, according to a report. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)
Amazon has not yet responded to FOX Business’ request for comment.
FOX Business’ Bonny Chu and Pilar Arias contributed to this report.
Evercore ISI senior managing director breaks down his price targets for Amazon and Expedia on ‘Varney & Co.’
Amazon is set to implement significant job cuts, aiming to reduce nearly 10% of its corporate workforce, as reported by Reuters. This move follows an earlier decision to eliminate approximately 14,000 white-collar positions in October. The company is now preparing for a second wave of layoffs, potentially affecting a similar number of employees, with an overall target of around 30,000 jobs. However, the exact scope of these layoffs may still change, according to sources cited by Reuters.
If these cuts are fully realized, they would represent the largest layoffs in Amazon’s history, surpassing the approximately 27,000 jobs the company eliminated in 2022. Reports indicate that the layoffs could commence as early as next week, impacting various departments including Amazon Web Services, retail, human resources (internally referred to as People Experience and Technology), and Prime Video.
AMAZON DIGS DEEP FOR AI GOLD AS COPPER MINE PARTNERSHIP FUELS MASSIVE DATA CENTER EXPANSION
Amazon is preparing to cut thousands of corporate jobs in a broad workforce reduction, according to a report. (Miguel J. Rodriguez Carrillo/Bloomberg via Getty Images / Getty Images)
According to Reuters, Amazon has attributed the October job cuts to the rise of artificial intelligence software. In an internal letter to employees, the company stated, “this generation of AI is the most transformative technology we’ve seen since the internet, and it’s enabling companies to innovate much faster than ever before.”
CEO Andy Jassy had previously indicated that he expected the retailer’s corporate workforce to shrink due to efficiencies gained from AI. However, he later clarified during the company’s third-quarter earnings call that the layoffs were not financially motivated or directly related to AI, but rather a response to excessive bureaucracy. “You end up with a lot more people than what you had before, and you end up with a lot more layers,” Jassy explained.
POPULAR ALCOHOL BRANDS COULD BE FORCED TO SELL OFF INVENTORY AFTER BANKRUPTCY SETBACK
Workers at an Amazon office in Bellevue, Washington, US, on Thursday, July 18, 2024. (Grant Hindsley/Bloomberg / Getty Images)
In an internal message sent in October, Amazon informed employees that they would remain on the payroll for approximately three months while seeking other job opportunities. The company stated, “We’re working hard to support everyone whose role is impacted, including offering most employees 90 days to look for a new role internally (the timing will vary some based on local laws), and our recruiting teams will prioritize internal candidates to help as many people as possible find new roles within Amazon.”
This 90-day window is set to expire on Monday. Additionally, Jassy initiated a program last year aimed at reducing the number of managers within the company. This included creating an anonymous complaint line to identify inefficiencies, which reportedly generated around 1,500 responses and led to over 450 process changes.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Amazon plans to reduce its corporate workforce by thousands as it streamlines operations and cuts internal bureaucracy, according to a report. (Luke Sharrett/Bloomberg via Getty Images / Getty Images)
Amazon has not yet responded to FOX Business’ request for comment.
FOX Business’ Bonny Chu and Pilar Arias contributed to this report.
