Tech Giant Begins Largest Workforce Reduction in Its History
Amazon will lay off approximately 30,000 employees starting October 28, marking the largest round of layoffs in the company’s history, as reported by CNBC. The move is part of a broader effort to cut costs and reverse the massive hiring wave triggered by the Covid-19 pandemic, which fueled an unprecedented boom in online shopping.
The layoffs, delivered via email, will primarily affect corporate staff, accounting for about 10% of Amazon’s 350,000 office employees. In total, the company employs 1.55 million people worldwide.
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Sources cited by The Guardian and The Wall Street Journal say the job cuts are closely linked to Amazon’s increasing use of artificial intelligence (AI) in its operations. CEO Andy Jassy said in June that AI agents and generative AI systems would reduce staffing needs in several departments. “It’s hard to predict exactly how this will unfold, but we expect our overall workforce to decrease in the coming years,” Jassy noted.
Divisions such as devices, communications, podcasting, and human resources will be the first to face reductions, with up to 15% of HR staff expected to be affected, according to Fortune. Team managers have received special training on how to communicate the layoffs to affected employees.
Despite the internal turmoil, Amazon’s shares rose 1.2% on Monday, ahead of its upcoming quarterly earnings report. The company joins other tech giants — Microsoft, Meta, Alphabet, and Google — that have collectively eliminated tens of thousands of jobs over the past three years.
Photo: Investopedia
