Amazon Announces Historic Corporate Layoff, 14,000 Jobs Affected
Amazon has announced a massive job cut, affecting approximately 14,000 corporate employees. This marks the largest reduction in the company’s corporate workforce in its history. The layoffs, which commenced on Tuesday morning, span across multiple business units. These include human resources, Amazon Web Services (AWS), logistics, and the devices division.
CEO Andy Jassy emphasized the need to “reduce bureaucracy and remove layers” as the company heavily invests in artificial intelligence. These cuts represent about 4% of Amazon’s 350,000 corporate employees. Amazon executives have indicated that this may not be the final round of reductions. They hinted at additional layoffs as the company aims for “efficiency gains” through 2026.
The job cuts come at a time when Amazon is facing investor pressure to control costs. This is while it plans on spending over $100 billion on AI infrastructure in 2025. The employees affected by this decision will receive 90 days to find internal positions. Severance packages will be provided for those unable to secure new roles within the company.
Source: CNBC