New Delhi: American e-commerce giant Amazon is reportedly preparing to initiate a second round of layoffs next week, potentially affecting around 30,000 employees. The move is linked to the increasing use of artificial intelligence (AI) within the company, according to reports.
The upcoming layoffs are expected to impact staff primarily from Amazon Web Services (AWS), Human Resources, Amazon Prime Video, and the retail segment. This follows an earlier round in October when Amazon let go of 14,000 white-collar employees, which was part of a broader plan to reduce 30,000 positions.
According to sources cited by Reuters, the second round of layoffs may involve a similar number of employees. So far, Amazon has not commented on these reports.
In an internal letter issued in October, Amazon linked the initial layoffs to the growing adoption of AI software. The letter described AI as “the most revolutionary technology since the internet” that enables companies to innovate faster than ever before.
However, during the announcement of the company’s third-quarter earnings, Amazon CEO Andy Jassy told analysts that the cuts were “not really financial” or “AI-inspired.” Instead, he attributed them to cultural reasons, explaining that the company had become overly bureaucratic with too many layers of management.
The planned layoffs of 30,000 employees would be the largest in Amazon’s 30-year history, surpassing the 27,000 layoffs in 2022. Despite this, the number remains a small fraction of Amazon’s total workforce of 1.5 million employees.
Reports indicate that affected employees will continue to receive their salaries for up to 90 days. During this period, they may apply for other internal positions or seek employment elsewhere.
At this week’s World Economic Forum meeting in Davos, technology industry leaders emphasised that AI is unlikely to replace human jobs entirely but will automate certain tasks, changing the way work is done.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment