Amazon's Employment Reform with 30 Thousand Employees: Wave of Layoffs

Amazon's Layoff Plans

The American technology giant Amazon has made a significant decision while integrating artificial intelligence applications into its business processes. The company is set to carry out its largest layoff wave as of 2023.

The Fate of 30,000 Employees

Amazon announced that approximately 30,000 corporate positions could be eliminated starting from Tuesday. The layoffs are expected to affect the human resources, devices and services, and operations divisions.

The Largest Cut Since 2022

Since the end of 2022, the company has not made such a large cut after laying off a total of 27,000 people. In previous periods, smaller-scale layoffs continued. For instance, in January, a portion of positions in the communication and sustainability departments were reduced.

Management Changes and Artificial Intelligence Investments

Amazon CEO Andy Jassy plans to reduce the number of executives to address the issue of "strong bureaucracy" seen in the company's structure. Additionally, with the increase in artificial intelligence applications, it is anticipated that fewer workers will be needed in certain units. These statements are causing concern among employees and investors.

The Scale of the Cuts

The layoffs represent a small fraction of Amazon's total 1.55 million employees. However, this number accounts for nearly 10 percent of the company's approximately 350,000 corporate employees.