Post by : Badri Ariffin

In a significant move, Amazon has confirmed it will reduce its global workforce by approximately 16,000 positions, as part of its ongoing restructuring efforts that commenced last October. This action escalates the total job reductions to around 30,000 across its corporate sectors.

These layoffs are included in Amazon's strategy to enhance operational efficiency, minimize management layers, and streamline processes. The company expanded its workforce notably during the pandemic and is now realigning its organizational structure as AI technology becomes increasingly prevalent in its operations.

The job reductions will touch various departments, including Amazon Web Services (AWS), retail, Prime Video, and HR teams.

Beth Galetti, Amazon’s senior vice president of people experience and technology, emphasized the company’s aim to cut bureaucracy and allow teams greater autonomy. She noted that while Amazon does not foresee frequent large-scale layoffs, periodic reviews of team structures will continue as necessary.

Earlier comments from CEO Andy Jassy highlighted that AI tools are likely to automate numerous roles, which may result in an ongoing decline in corporate staffing levels. Additionally, Amazon is making substantial investments in robotic systems and AI infrastructure to enhance operational efficiency and bolster its cloud offerings.

These layoffs compose a minor fraction of Amazon's total employee base, which exceeds 1.5 million, primarily located in warehouses and fulfilment centres.

Next week, Amazon is expected to release its quarterly earnings, shedding light on its financial health and initiatives related to AI.

#Global News