Amazon cuts 16,000 jobs globally to undo pandemic-era hiring amid AI push
Amazon is eliminating 16,000 jobs worldwide to reduce bureaucracy and accelerate AI adoption, following a previous cut of 14,000 jobs in October, totaling about 30,000 layoffs this cycle.
- On Wednesday, Amazon confirmed it is cutting another 16,000 corporate employees globally, the second phase of a restructuring totaling about 30,000 job cuts since October, announced by Beth Galetti, senior vice president of people experience and technology.
- Company leaders say cuts aim to reduce bureaucracy and speed decision-making, with Andy Jassy, CEO, linking workforce shrinkage to AI-driven efficiency and a cultural reset.
- Amazon is discontinuing its Amazon One biometric palm recognition service and will close all Amazon Go and Amazon Fresh stores, while Galetti said most US employees get 90 days to search internally with severance and health benefits.
- Local leaders warned the Downtown Seattle Association and Jon Scholes said layoffs starting this week, possibly from January 27, could reduce foot traffic near offices in the Seattle region, which employs around 50,000 corporate workers.
- The move mirrors a broader Big Tech trend of cutting jobs while boosting AI investment as Amazon reports its latest quarterly earnings on Feb. 5, with analysts noting AWS may support the stock.
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474 Articles
Amazon axes 16,000 jobs as it pushes AI and efficiency
Amazon confirmed 16,000 corporate job cuts on Wednesday, completing a plan for around 30,000 since October, while leaving open the possibility of further reductions. Reuters first reported last week that Amazon was planning a second round of job cuts as part of its broader goal under CEO Andy Jassy, who has been trying to reduce bureaucracy and abandon underperforming businesses.
Amazon axes 16,000 corporate roles worldwide
Amazon has begun notifying staff impacted by plans to cut 16,000 corporate roles, with affected employees told they will receive full pay and benefits for 90 days. Business Insider reported the emails began landing on Wednesday morning (US time), with notices sent to employees in the US, UK and India. The messages were signed by Beth Galetti, SVP, People Experience & Technology. What Amazon told impacted employees In the email shared with Busine…
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