- Amazon has announced another round of large-scale layoffs. The company stated that it will terminate the employment of 16,000 employees. The official announcement was made by Beth Galetti who serves as Amazon's Senior Vice President.
- The Amazon layoffs which occurred in 2023 represent the company's largest workforce reduction. The company announced job cuts which would affect approximately 27000 workers during that year. Amazon conducted a layoff of 14000 corporate workers in October of last year.
Reasons Behind the Layoffs
Amazon stated that its layoffs serve as part of a larger plan to restructure its entire organization. The company plans to reduce roles that were added during the COVID-19 pandemic. The organization announced its plan to use generative artificial intelligence for the purpose of automating specific corporate operations.
According to Amazon, the process includes:
- The organization will decrease its department size
- The organization will enhance its internal teamwork
- The organization will eliminate its administrative processes
- The company did not specify which departments will be most affected.
Impact on Employees
Beth Galetti announced that the organizational changes which started in October have now reached completion. Employees based in the United States will receive 90 days to apply for other roles within the company. The company will provide severance and additional benefits to employees who fail to find new employment during this time period according to their existing policies.
She also confirmed that Amazon will continue hiring in key and strategic business areas despite the layoffs.
