Why is Amazon laying off 16,000 employees?

Amazon is laying off 16,000 employees as part of ongoing organizational reviews to strengthen the company, reduce layers, increase ownership, and remove bureaucracy, which CEO Andy Jassy attributes to 'culture'.

Is Amazon's business still growing despite these layoffs?

Yes, Amazon's business is booming; the company reported a 13% increase in sales to $180.2 billion in the quarter ending September 30.

Home / Business and Economy / Amazon Lays Off 16,000 More Employees Amidst AI Talk

Amazon Lays Off 16,000 More Employees Amidst AI Talk

Q: Will Amazon have more layoffs after this recent announcement?

Amazon's Senior VP Beth Galetti indicated that while it's not a planned "new rhythm" of frequent reductions, teams will continue to evaluate their capacity and make adjustments as appropriate.

28 Jan

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Summary

Amazon announced 16,000 job cuts, the second round since last fall.
HR leader Beth Galetti hinted more layoffs might follow organizational reviews.
CEO Andy Jassy cited 'culture' as a driver, not AI or finances.

Amazon Lays Off 16,000 More Employees Amidst AI Talk

Amazon confirmed a significant round of layoffs, affecting around 16,000 employees. This recent announcement follows a substantial job cut of 14,000 corporate workers in October. The company's Senior VP of People Experience and Technology, Beth Galetti, shared the news via a blog post, stating that while it's not a "new rhythm" of frequent reductions, teams will continue to evaluate capacity.

Galetti indicated that some teams finalized their organizational changes recently, while others completed this work concurrently with the October announcement. Amazon CEO Andy Jassy has previously clarified that these workforce adjustments are driven by company culture and efficiency gains rather than immediate financial pressures or AI advancements. However, Jassy has also acknowledged that widespread AI adoption may lead to fewer corporate jobs in the long term.