Amazon to cut thousands of jobs in sweeping corporate layoffs
Amazon is planning to cut thousands of jobs as part of a broader push to eliminate nearly 10% of its corporate workforce, according to Reuters.
After initially cutting roughly 14,000 white-collar jobs in October, Amazon is expected to launch a second round of layoffs impacting a similar number of employees, with an overall target of about 30,000 jobs, although the scope may change, according to two sources cited by Reuters.
If fully realized, the cuts would amount to the largest layoffs in Amazon’s history, surpassing the roughly 27,000 jobs the company cut in 2022.
According to Reuters, the layoffs could begin as early as next week and impact employees across Amazon Web Services, retail, human resources (known internally as People Experience and Technology) and Prime Video.
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Reuters reported that the e-commerce giant linked the October cuts to the rise of artificial intelligence software, saying in an internal letter to staff that "this generation of AI is the most transformative technology we’ve seen since the internet, and it’s enabling companies to innovate much faster than ever before."
Amazon CEO Andy Jassy said last year he expected the retailer's corporate workforce to diminish resulting from the efficiencies stemming from using AI.
But Jassy later told analysts during the company’s third-quarter earnings call that the layoffs were not financially driven or directly connected to AI, but rather the result of excessive bureaucracy, Reuters reported.
"You end up with a lot more people than what you had before, and you end up with a lot more layers," Jassy said.
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In its internal message sent in October, Amazon told employees they could remain on the payroll for roughly three months while seeking other job opportunities.
"We’re working hard to support everyone whose role is impacted, including offering most employees 90 days to look for a new role internally (the timing will vary some based on local laws), and our recruiting teams will prioritize internal candidates to help as many people as possible find new roles within Amazon," the message said.
That 90-day window is set to expire Monday.
Jassy also launched an initiative last year to reduce the number of managers at the company by creating an anonymous complaint line to identify inefficiencies, which he said generated roughly 1,500 responses and led to more than 450 process changes.
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Amazon did not immediately respond to FOX Business’ request for comment.
FOX Business' Bonny Chu and Pilar Arias contributed to this report.