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Are You Worried About Amazon’s Massive Layoffs? Here Is What You Absolutely Need to Know.
Amazon is cutting jobs from its corporate teams. The company confirmed it will remove about 14,000 roles. This move is the first step in a larger plan that could affect as many as 30,000 corporate positions. This represents about 10% of its corporate staff.
This is a big change for the company. It is the largest job cut since late 2022, when about 27,000 positions were removed. The company has a total of 1.55 million employees around the world, most of whom work in warehouses.
Why the Job Cuts Are Happening
Company leaders want to make Amazon leaner and more efficient. The CEO, Andy Jassy, started a plan to cut down on extra steps and layers within the company. The main reasons for this decision include:
- Reducing Costs: The company wants to spend less money and save more. This helps keep the business financially healthy, especially as costs for everything go up.
- Correcting for Overhiring: During the pandemic, online shopping grew very fast. Amazon hired many people to keep up. Now, the company feels it has too many staff members for its current needs.
- Focusing on AI: Amazon is investing heavily in artificial intelligence (AI). The company believes AI will change how work gets done. By using AI to handle routine tasks, Amazon plans to operate with fewer people in some roles.
- Becoming More Agile: The goal is to make the company work more like a startup. This means making decisions faster and responding to customer needs more quickly, with fewer layers of management.
Who Is Affected and What Happens Next
The job reductions will impact several departments. These include human resources (PXT), cloud services (AWS), advertising, and operations.
Employees whose jobs are cut will be notified. Most will have 90 days to find a new role within Amazon. If they cannot find a new position in that time, they will be offered a severance package. The company stated it is still hiring for important, strategic areas and will give preference to the employees it laid off.
This move is part of a larger trend. Many big companies in tech and other industries are also cutting jobs as they explore how AI can make their businesses more efficient.