According to an exclusive report by Reuters on October 27th, this global e-commerce giant plans to lay off up to 30000 employees, accounting for approximately 10% of its total workforce, starting from Tuesday. After the news came out, an Amazon employee revealed to the media that the entire company was on edge, 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 such as human resources, equipment and services, and operations. The managers of the affected teams have 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 in Amazon CEO Andy Jassy's plan to promote organizational de bureaucratization. Since taking over, Jassy believes that Amazon has become bloated after rapid expansion, with lengthy decision-making processes and too many management levels. To this end, he initiated internal reform actions and even established anonymous channels to encourage employees to report inefficient processes. Earlier this year, he mentioned that this channel had received over 1500 suggestions and facilitated 450 internal improvements. However, this efficiency revolution means that certain repetitive and procedural positions may no longer be needed, and the accelerated adoption of AI technology has further fueled this trend.
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. Jassy hinted as early as June about the potential layoff risks brought by artificial intelligence, admitting 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.
Amazon has been continuously investing in generative AI and automation technology in recent years, not only applied to 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 responded positively to this news, with Amazon's stock price rising 1.2% to $226.80 per share after the announcement. 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.
|