Amazon has announced plans to reduce its global corporate workforce by approximately 14,000 positions, affirming the need for a more streamlined organizational structure to capitalize on opportunities related to artificial intelligence (AI). This decision comes after earlier reports indicated that the company might cut as many as 30,000 jobs.
Beth Galetti, a senior vice president at Amazon, communicated in a note to staff that the restructuring aims to reinforce the company’s ability to focus resources on significant strategic initiatives and to better meet current and future customer demands. While acknowledging that some may question the necessity of these layoffs given Amazon’s strong performance, Galetti emphasized the transformative impact of AI on business operations and innovation.
Galetti expressed a belief that a leaner organization with fewer hierarchical layers would enable Amazon to respond more swiftly to its customer and operational needs. The company is taking steps to support employees affected by the layoffs, including assistance in finding new positions within the organization and providing transition support, such as severance pay, for those unable to secure new roles.
In terms of workforce demographics, Amazon employs over 1.5 million individuals worldwide, with around 350,000 in corporate roles, which encompass executive, managerial, and sales positions. The recent layoffs come in the context of broader trends within the tech industry, where companies increased hiring during the COVID-19 pandemic to meet soaring demand for online services and deliveries.
CEO Andy Jassy has previously stated that the adoption of AI tools may result in job reductions as automation increasingly takes over routine tasks. He indicated that while fewer workers may be needed for certain roles, there will be a demand for personnel in other areas of the business. The company has not specified the potential impact of the job cuts on employees in specific regions, including the UK.
Source: https://www.bbc.com/news/articles/c1m3zm9jnl1o?at_medium=RSS&at_campaign=rss