Amazon announced its largest layoff plan in history.

Amazon Announces Largest Layoff Plan in History

Amazon (AMZN) announced today what is the largest layoff plan in the company's history. According to a report by CNBC, the layoffs will be implemented on a wide scale, encompassing all of Amazon's business lines.

30,000 Employees to be Laid Off

Sources announced that Amazon will begin notifying its employees of layoffs via email today. According to Reuters, a total of 30,000 employees are planned to be laid off. Amazon currently employs more than 1.54 million people, making it the second-largest private sector employer in the country. The majority of these employees are part of the workforce in warehouses, while the company has approximately 350,000 corporate employees.

Layoffs Increasing in the Technology Sector

According to data from Layoffs.fyi, Amazon's planned layoffs will rank among the largest layoffs in the technology sector since 2020. So far this year, more than 200 technology companies have laid off a total of approximately 98,000 employees. Microsoft, Meta, and Google have also conducted significant layoffs this year.

Impact of Artificial Intelligence and Economic Challenges

The layoffs in the technology sector are driven by economic challenges such as high inflation and rising interest rates, as well as the increasing adoption of artificial intelligence. As part of an ongoing layoff process that started in 2022, Amazon has laid off more than 27,000 employees. Layoffs conducted this year have been on a more limited scale.

Amazon's Management Streamlining Strategy

Amazon CEO Andy Jassy stated that these layoffs are viewed as part of a comprehensive cost-cutting campaign initiated as a result of the pandemic in 2020. Jassy continues efforts to flatten the organizational structure and reduce the number of managers.

The information provided here does not constitute investment advice.