Amazon Corporation on Tuesday, October 28, announced plans to lay off about 14 thousand employees. This is stated on the company's website. This is one of Amazon's most massive staff reduction campaigns.
A new series of mass layoffs in the company this time was associated with the desire to reduce bureaucracy and make the company more flexible in the era of AI.
“Some may ask why we are cutting roles when the company is already thriving. <...> It is important to remember that the world is changing rapidly. This generation of artificial intelligence is the most transformative technology, allowing companies to innovate much faster than ever before. We believe we need to become smarter, with fewer layers and more accountability, to move faster to benefit our customers and business,” Beth Galetti, Amazon vice president, said in a statement.
The corporation promised severance pay to employees who were laid off and priority hiring for new vacancies in other departments.
Now, as Reuters notes , the company employs about 1.5 million people - mostly warehouse workers. About 350 thousand people are corporate employees who work in administrative, technical or management positions.
The day before, the agency announced the corporation's plans to lay off up to 30 thousand people. This could be the largest reduction in Amazon's history, but given that the officially announced figure is half as low, this campaign is inferior to the mass layoffs in January 2023. Then Amazon announced plans to lay off 18 thousand people, and in the spring of the same year it cut another 9 thousand.
In total, the corporation has laid off 27 thousand people since 2022, notes CNBC.