Amazon Announces Significant Workforce Reduction
Amazon has announced that it will be letting go of 14,000 employees in its corporate department. This is part of the firm's strategy for reducing costs. In a statement, Senior Vice President Beth Galetti said that this is in line with Amazon's strategy to balance costs as it invests heavily in artificial intelligence (AI) technology.
Support and Transition Period for Employees
The affected staff will have 90 days to relocate to another role at Amazon. Those who fail to move to another role will be provided with a severance package, outplacement assistance, and health insurance coverage. This initiative will help to smoothen the exit of workers from the business.
Layoff Details and Workforce Context
Amazon's corporate team now has 350,000 employees, so the reduction impacts around 4% of these employees. The total number of Amazon employees worldwide will now be approximately 1.56 million workers.
Previous Layoffs and Future Outlook
Amazon reduced its workforce by 9,000 in March 2023, after having earlier reduced employment by 18,000 jobs over the last two months. The recent 14,000 workforce reduction is the biggest reduction since early 2023.
CEO Andy Jassy had noted in June 2024 that Amazon's corporate workforce could continue to shrink in the years ahead, primarily because of the increasing influence of generative AI on corporate operations.
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