Amazon has revealed plans for a significant wave of layoffs affecting approximately 16,000 corporate employees across the globe. This move is part of a strategic internal overhaul aimed at streamlining operations, cutting through bureaucracy, and accelerating the integration of artificial intelligence (AI) within the company, according to a report based on information from Reuters.
The workforce reduction—constituting nearly 10% of Amazon's corporate staff—will primarily impact sectors such as Amazon Web Services (AWS) and retail-related business units. These cuts are in addition to previous reductions in administrative and management roles, as noted in the document.
Amazon has framed this decision within a broader initiative to enhance operational efficiency and reorganize teams at a time when AI is enabling the automation of processes and the redefinition of roles that previously required more human involvement.
In the United States, affected employees will have a 90-day period to seek internal relocation opportunities before receiving exit packages or severance, according to reports.
Key Areas Targeted for Restructuring
The primary focus of the restructuring will be on AWS and the retail business, as part of an internal reorganization aimed at creating a "more agile and efficient" organization. The impact will extend to corporate teams rather than logistics or warehouse workers, with divisions such as Prime Video, Human Resources, and other core functions being affected.
Despite these layoffs, Amazon has indicated that it will not entirely halt hiring and will continue to bring in new staff in strategically important areas.
AI's Role in Amazon's Transformation
Amazon emphasizes that artificial intelligence plays a crucial role in its transformation, enabling the automation of repetitive tasks, optimizing resources, and accelerating innovation. The company acknowledges that increased AI use is diminishing the need for certain traditional roles and points to internal assessments of long-term manual task automation.
The 16,000 layoffs add to a previous wave that had already cut approximately 14,000 administrative and management positions.
Concurrently, the company announced changes to its grocery business, including store closures and conversions, as part of a broader company-wide reorganization.
Impact of AI on Amazon's Workforce Strategy
Why is Amazon laying off employees?
Amazon is laying off employees as part of a strategic internal overhaul to streamline operations, reduce bureaucracy, and accelerate the adoption of artificial intelligence, which automates processes and redefines roles.
Which areas within Amazon are most affected by the layoffs?
The layoffs primarily impact Amazon Web Services (AWS) and retail-related business units, with additional effects on divisions like Prime Video, Human Resources, and other core functions.
What opportunities do affected employees have for internal relocation?
Affected employees in the United States have a 90-day period to seek internal relocation opportunities before receiving exit packages or severance.