Amazon has once again launched the largest wave of layoffs in history.
According to an exclusive report by Reuters, Amazon plans to lay off 30000 corporate employees, accounting for approximately 10% of its total company level workforce.
As soon as the news came out, an Amazon employee revealed to the media that the entire company was "sitting on pins and needles" waiting for the layoff notice.
Although this number is not a significant proportion of Amazon's 1.55 million total employees, it is undoubtedly a huge shock for the company's internal management and white-collar departments.
According to sources, this round of layoffs will affect multiple departments including human resources, equipment and services, and operations.
The managers of the affected teams received communication training on Monday, and it is expected that the laid-off workers will receive notification emails starting from Tuesday morning.
This large-scale layoff is an important step for Amazon CEO Andy Jassy to promote the organization's "de bureaucratization" plan.
Since taking over, Jassy has always believed that Amazon has become bloated after rapid expansion, with lengthy decision-making processes and too many management levels. To this end, he initiated an internal reform initiative and even established anonymous channels to encourage employees to report inefficient processes.
This is not the first time Amazon has implemented large-scale layoffs. In 2023, the company phased out 27000 corporate employees. In addition, Fortune magazine reported this month that Amazon plans to lay off up to 15% of its human resources department employees.
As early as June, Jassy had hinted at the potential layoff risks that artificial intelligence could bring.
He admitted that AI is redefining work patterns, especially in areas such as data processing, customer support, and operations management. As more tasks are taken over by automated tools, some positions will naturally disappear.
In recent years, Amazon has continued to invest in generative AI and automation technology, not only applied in its cloud computing department AWS, but also comprehensively promoted in logistics, customer service, and product recommendation businesses.
Nowadays, the efficiency improvement of AI is driving the restructuring of human resources in both directions, becoming the direct driving force behind this round of layoffs.
The capital market has responded positively to this news. Amazon's stock price rose 1.2% after the announcement, reaching $226.80 per share.
Investors are clearly more concerned about potential profitability improvements rather than short-term personnel turnover. The company plans to release its third quarter financial report this Thursday, and it is widely expected that its profit margin will improve due to cost cutting and AI driven efficiency improvements.
However, some analysts have pointed out that large-scale layoffs often affect company culture and employee morale, especially in innovation driven technology companies where excessive streamlining may bring potential risks.
As of now, Amazon has not issued a formal statement on this matter.
Previously, media reports stated that Amazon expects the use of robots to replace over 500000 American employees and avoid adding 160000 new employees by 2027.
Although Amazon has publicly denied this claim, its intention to reduce costs and increase efficiency is evident.
|
12
0