Amazon has announced another major round of layoffs, cutting 16,000 jobs globally as part of its ongoing workforce restructuring. The move comes amid increased adoption of artificial intelligence tools and efforts to streamline operations following aggressive hiring during the COVID-19 pandemic.
US-based tech giant Amazon has announced that it will eliminate 16,000 jobs across its global workforce. This marks the second major round of layoffs within three months, as the company continues restructuring after large-scale hiring during the pandemic and expands the use of artificial intelligence (AI) tools.
The latest layoffs are expected to impact employees across multiple divisions, including Amazon Web Services (AWS), retail, Prime Video, and the human resources (HR) department.
According to reports, Amazon had already cut 14,000 white-collar jobs by the end of October last year. At the time, CEO Andy Jassy had emphasised the need to reduce bureaucracy by flattening operational layers and cutting down the number of managers.
Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, addressed concerns around recurring layoffs, stating:
"Some of you may ask whether this marks the beginning of a new era where we announce large cuts every few months. This is not our plan."
The job cuts underline how artificial intelligence is transforming corporate workforce dynamics. Significant improvements in AI assistants are enabling companies to perform tasks ranging from routine administrative work to complex coding with greater speed and accuracy, driving widespread adoption across industries.
Amazon CEO Andy Jassy had said last summer that increased use of AI tools would lead to greater automation of work, resulting in the elimination of certain corporate roles.
Earlier this month, during the World Economic Forum’s annual meeting, senior executives acknowledged that while some jobs will be lost due to AI, new roles will also be created. Some leaders noted that companies were already planning workforce reductions, with AI often being cited as a convenient justification.
The combined 30,000 job cuts represent a small fraction of Amazon’s total workforce of 1.058 million employees, but account for nearly 10% of its corporate workforce. The majority of Amazon’s employees are based in fulfilment centres and warehouses.
Like other tech giants such as Meta and Microsoft, Amazon had significantly ramped up hiring during the COVID-19 pandemic due to a surge in demand. The company is now restructuring its workforce while also investing heavily in robotics within its warehouses to accelerate packaging and delivery, reduce reliance on human labour, and lower operational costs.