Ongoing Layoffs at Amazon

Global e-commerce giant Amazon continues to deliver a series of shocks to its workforce as it proceeds with phased layoffs. Reports over the past few months suggest that the company is moving ahead with a plan to cut nearly 30,000 jobs in total. As part of this process, Amazon laid off more than 14,000 employees last year. According to reliable sources, the company is now planning to eliminate approximately 15,000 more jobs this year. Reuters had earlier reported that Amazon cut as many as 14,000 white-collar positions in October last year.

There are also indications that an additional 14,000 employees could face layoffs this year, with the process likely to begin from Tuesday. These job cuts are expected to significantly impact Amazon Web Services (AWS), retail operations, Prime Video and human resources divisions, where large-scale workforce reductions are anticipated. However, sources close to the company note that Amazon may revise its layoff plans depending on prevailing economic conditions. Some analysts believe that advancements in artificial intelligence (AI) are contributing to the large-scale job losses.

Addressing the issue during a recent meeting, Amazon CEO Andy Jassy clarified that the layoffs are not driven by financial distress or AI adoption. “These job cuts are part of the company’s long-standing operational approach. We continue to hire new employees every year. As the workforce expands, periodic layoffs become unavoidable,” he stated. Notably, in 2022, Amazon laid off nearly 27,000 employees the largest workforce reduction in its 30-year history. Since then, the company has continued to implement layoffs affecting over 10,000 employees annually.