The trend of AI replacement intensifies as Amazon lays off 14,000 people
Amazon plans to cut approximately 14,000 corporate positions, marking its second round of layoffs in two years. CEO Andy Jassy warned that artificial intelligence will lead to a reduction in the workforce, with layoffs affecting multiple departments, including logistics, payments, and cloud computing. Although the scale of layoffs exceeds those at the end of 2022 and the beginning of 2023, the company will still increase hiring in certain areas. Jassy emphasized that more jobs will be automated to address the post-pandemic hiring surplus
According to Zhitong Finance APP, Amazon (AMZN.US) plans to cut about 14,000 corporate positions. Just a few months ago, its CEO Andy Jassy warned that artificial intelligence would reduce the company's workforce. This round of layoffs marks Amazon's second round of layoffs in about two years.
In June, Jassy stated that as the company increasingly uses artificial intelligence to perform tasks typically handled by humans, the number of employees may decrease. These remarks sparked panic among employees, who searched for clues about potential layoffs in anonymous online chat rooms. Business leaders across various industries are not only exploring new artificial intelligence services but also looking for ways the technology can replace human functions.
According to insiders, Amazon's layoffs will involve various positions across logistics, payments, video games, and cloud computing departments.
Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, stated in a blog post on Tuesday: "The layoffs we are undertaking are to ensure we are investing in our biggest bets by further reducing bureaucracy, removing layers, and reallocating resources, making us stronger."
Galetti mentioned that the company will increase hiring in certain business areas, and the 14,000 figure represents the overall number of layoffs. Media reports previously indicated that up to 30,000 jobs could be lost. This scale of layoffs will exceed the rolling layoffs at the end of 2022 and early 2023, which ultimately affected more than 27,000 corporate employees as Jassy sought to cut costs after the pandemic-era boom. Since then, smaller-scale layoffs targeting individual teams have been steadily ongoing.
As of June 30, this online retailer and cloud computing provider had 1.55 million employees worldwide and is scheduled to announce quarterly earnings on Thursday. Jassy's tenure has been marked by layoffs and the closure of various projects. An insider indicated that Jassy emphasized that more of the company's work should be automated, and despite the layoffs over the past three years, the company still appears bloated due to the hiring spree during the COVID-19 pandemic.
Shortly after Jassy's remarks in June, signs of tightening began to emerge within the company. According to insiders, Amazon set more aggressive workforce reduction targets during the summer and did not fill vacant positions in its corporate logistics and advertising operations
