Amazon is set to implement additional corporate layoffs, reportedly beginning next week, as stated in recent reports from Reuters and Bloomberg. This new round of job cuts could mirror the substantial reductions experienced last year, with estimates suggesting it may surpass the historic total of 27,000 positions eliminated by the company in 2023.
In October, Amazon had already laid off approximately 14,000 employees worldwide. The company has indicated that while layoffs are anticipated, hiring will continue in specific strategic sectors. CEO Andy Jassy mentioned that the workforce may shrink over time due to increased efficiency from innovations like artificial intelligence.
Jassy clarified that the impending layoffs are not a reaction to financial difficulties or AI replacing workers, but rather a strategy to enhance agility and address the complexities that arose from rapid growth in previous years. The company aims to streamline operations after tripling its corporate workforce from 2017 to 2022.