Amazon Announces Significant Job Cuts Amidst Rapid AI Transition
New Delhi, October 29: In a substantial shift, Amazon has revealed its intention to lay off approximately 14,000 corporate employees, constituting about 4% of its global corporate workforce. Earlier speculations suggested that the company was contemplating a reduction of nearly 30,000 positions.
These layoffs underscore a pivotal moment as Amazon delves deeper into the realm of artificial intelligence (AI), following CEO Andy Jassy’s caution that advancements in AI could significantly alter the composition of the workforce.
Amazon, with a global workforce of around 1.55 million, employs about 350,000 individuals in corporate roles.
The decision to terminate 14,000 corporate jobs is attributed to escalating operational expenses and an economic deceleration in specific retail sectors after a period of extensive hiring during the pandemic.
Divisions such as Amazon Web Services (AWS), Prime Video, and Twitch are expected to bear the brunt of these adjustments.
Reasons Behind Amazon’s Job Reductions Despite Robust Performance
Beth Galetti, Senior Vice President of People Experience and Technology, indicated that these layoffs are aimed at streamlining operations, eliminating redundant layers, and reallocating resources towards key projects crucial for future growth.
In a blog post, Galetti stated, “This restructuring will involve reductions in certain areas while simultaneously hiring in others, resulting in an overall net decrease of approximately 14,000 roles in our corporate workforce.”
She elaborated that these layoffs are part of Amazon’s strategy to maintain competitiveness in an ever-evolving industry landscape. Despite its strong performance and commitment to innovation, the transformative power of AI has prompted the company to reassess its organizational dynamics.
“We believe that a leaner structure, characterized by fewer tiers and heightened ownership, is essential for optimizing our response to customer and business needs,” Galetti affirmed.
Support Measures for Affected Employees
In an effort to assist those impacted by the layoffs, Amazon will extend a variety of support mechanisms. This will include a 90-day window during which affected employees can explore internal job openings.
The recruitment team will prioritize internal candidates during this timeframe. For those unable to secure a new position, Amazon will provide transition support encompassing severance pay, health benefits, and outplacement services.
Implications for the Indian Workforce
Following the announcement of the global layoffs, notifications have reportedly begun reaching employees in the US, Canada, and Europe through internal communications.
As per a report by Economic Times, India is also likely to face cuts, with estimates suggesting that 800 to 1,000 corporate roles may be eliminated within the country.
Source link: Latestly.com.
