Amazon, a global leader in e-commerce, is going to lay off approximately 800 to 1,000 workers in India. This is part of the company's overall reduction in the global workforce, which includes 14,000 corporate employees across the globe.
Reason for the Layoffs
Amazon is eliminating jobs primarily in its finance, marketing, human resources, and technology divisions, according to company sources. The firings are part of a cost-reduction effort as the company ramps up its investment in artificial intelligence (AI).
There were initial reports that 30,000 jobs could be cut. However, Amazon confirmed that 14,000 will be impacted worldwide.
Employee Support and Transition Plan
Amazon stated that the impacted employees will have 90 days to look for new jobs within the company. Those who can't find another role or who opt out will be provided with:
- Severance payment
- Outplacement support services
- Health insurance coverage
Amazon's corporate unit currently has around 350,000 employees, and the latest reduction represents approximately 4% of that force.
Past Layoffs and Company Direction
Under the leadership of CEO Andy Jassy, Amazon has continued to reshape its corporate functions. Jassy already mentioned that generative AI and automation would result in fewer corporate roles in the long run.
In 2023, Amazon terminated a total of 27,000 employees in several rounds:
- March 2023: 9,000 global job cuts
- May 2023: 18,000 additional job terminations
Among them, 500 employees in India were impacted under the first round.
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