Amazon Plans Major Layoffs, Cutting 30,000 Jobs Amid AI Shift

Amazon is set to reduce its global workforce by approximately 30,000 corporate jobs, marking a significant shift for the company. This move comes as the tech giant, headquartered in Seattle, scales back its hiring following a period of rapid recruitment during the pandemic. Chief Executive Officer Andy Jassy has previously warned employees about potential job losses linked to advancements in artificial intelligence (AI).

Job Cuts Across Multiple Divisions

Reports from Reuters and the Wall Street Journal indicate that the layoffs will impact various divisions, including human resources, operations, devices and services, as well as Amazon Web Services (AWS). AWS, recognized as the leading provider of cloud computing services, encompasses a wide array of offerings such as storage, databases, machine learning, and security tools. Recent disruptions within AWS led to outages affecting numerous internet services worldwide, including several banks.

Insiders have stated that these job cuts are part of a broader effort to streamline operations and cut costs, reversing the extensive hiring spree that occurred during the pandemic when consumer behavior shifted towards online shopping. The layoffs are expected to impact nearly 10% of Amazon’s corporate workforce, which numbers around 350,000 employees.

Globally, Amazon employs over 1.5 million individuals, with a significant portion working in warehouse roles. In the United Kingdom, the company has about 75,000 employees, according to reports from the Express.

Ongoing Restructuring Efforts

In recent years, Amazon has been gradually reducing roles across various sectors, including devices, communications, and podcasting. Last month, the company announced plans to close all its Amazon Fresh grocery stores in the UK, which placed 250 jobs at risk. This decision aligns with Jassy’s earlier comments regarding the increasing reliance on generative AI and autonomous AI software systems, which he anticipates will further reduce the need for certain jobs in the corporate sector.

“As we roll out more Generative AI and agents, it should change the way our work is done,” Jassy said in a memo to employees. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”

As Amazon prepares for these significant changes, the company has not yet provided official comments regarding the layoffs. The anticipated job cuts reflect a broader trend in the tech industry as companies navigate the evolving landscape of AI and automation.