Amazon is preparing for a new wave of layoffs that could reach up to 30,000 corporate jobs starting this Tuesday, according to information provided by Reuters. The stated objective within the company is to cut expenses and correct the oversizing of personnel derived from the years of greatest demand during the pandemic. The news agency points out that, if confirmed at these levels, it would be the largest internal adjustment since the around 27,000 cuts that began at the end of 2022.
The new cut comes in a context of constant changes within Amazon since Andy Jassy took over as CEO. In these three years, the company has alternated layoffs and new hires. The first wave of mass layoffs under Jassy took place in November 2022 and primarily affected the Devices and Services teams. Since then, the company has continued to review its internal structure in search of a balance between efficiency and growth.
The figures. The plan contemplates up to 30,000 corporate cuts, according to the aforementioned media, which is equivalent to almost 10% of Amazon’s approximately 350,000 office employees. In its total global workforce, of about 1.55 million people, it represents a smaller fraction, but the internal impact would be considerable. If confirmed, it would be the company’s largest personnel adjustment since the around 27,000 positions eliminated between 2022 and 2023. The exact figure could vary depending on the financial priorities of each division.
Where it impacts. The most affected divisions will be, according to Reuters, the Human Resources departments – known internally as People Experience and Technology –, along with the Devices and Services areas, and part of the operations. In the last two years, Amazon had already made minor cuts to several of these teams, including communications and podcasts. The new departures, which begin this week, point to a broader reorganization within corporate structures.
Why now. Since his arrival, Andy Jassy has promoted a restructuring aimed at reducing what he himself described as excessive bureaucracy. Its strategy includes cutting hierarchical levels and promoting the use of artificial intelligence to optimize internal work. Jassy had already anticipated in June that the advance of these tools would cause new cuts, by automating routine tasks.
How will you communicate? The management teams began internal training this Monday to manage communication with affected employees, according to the sources consulted. Email notifications are scheduled for Tuesday morning, when the process will formally begin. Amazon wants area managers to be able to answer their teams’ questions and offer support during the transition.
While preparing this internal adjustment, Amazon is heading towards a new Christmas season that promises to be intense. The company plans to hire some 250,000 temporary employees to reinforce its logistics centers, the same number as in the previous two years. Next Thursday it will present its third quarter results, where it is expected to detail the impact of its internal reorganization and forecasts for the end of the year.
Images | Amazon (1, 2) | tonodiaz
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