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Amazon Plans Second Round of Job Cuts
23 Jan
Summary
- Amazon plans a second round of job cuts next week.
- The company aims to eliminate about 30,000 corporate positions.
- Cuts will impact AWS, retail, Prime Video, and HR units.
Amazon is reportedly preparing for a second wave of corporate job reductions, with further layoffs anticipated to commence as early as next week. This action is part of a larger strategy by the company to trim its workforce by approximately 30,000 corporate employees. This anticipated round of cuts is expected to be comparable in scale to those that occurred last year.
Previously, in October, Amazon enacted initial job cuts affecting around 14,000 white-collar workers, which was about half of the initially reported target. The scope of the upcoming cuts is understood to extend to various key divisions, including Amazon Web Services, the company's core retail operations, Prime Video, and its human resources department, known as People Experience and Technology.
The rationale behind these workforce adjustments has been varied. In an internal communication following the October layoffs, the company cited the transformative impact of artificial intelligence as a driver for innovation. However, CEO Andy Jassy later suggested that the reductions were not primarily driven by financial or AI factors, but rather by the company's culture.
