Amazon confirmed plans to cut an additional 16,000 corporate jobs, aiming to reduce its workforce by more than 30,000 employees since last October, with the possibility of further cuts under the plan. CEO Andy Jassy intends to reduce costs, restructure the organization, flatten management layers, and shut down low-performing business units.
Beth Galetti, Amazon's Senior Vice President of People and Technology, stated ina letterthat about 16,000 positions across the company will be eliminated. Employees will be given 90 days to seek new internal roles, but if they choose not to or cannot find a suitable position, the company will support their transition and provide severance pay.
Amazon currently employs over 1.58 million people, mostly in fulfillment and warehouse centers. While the 30,000 cuts may seem small relative to total staff, they represent roughly 10% of corporate jobs. This is the largest workforce reduction in 30 years, surpassing the 27,000 layoffs made between late 2022 and early 2023.
"This reduction aims to flatten organizational layers, increase responsibilities, and eliminate multi-step workflows," Beth Galetti wrote in the letter.
Additionally, Amazon has reported that it will close all remaining Fresh Grocery and Go Market stores and discontinue Amazon One, the biometric payment system allowing purchases via palm scanning.
Amazon began layoffs in October, cutting over 14,000 jobs then, citing similar reasons: poor company management and overhiring during the COVID-19 pandemic when online shopping surged.
Amazon CEO Andy Jassy previously stated that the adoption of AI and automation will lead to job losses as these technologies replace human workers. Amazon has heavily invested in warehouse robotics to accelerate packing and shipping processes, reduce labor reliance, and lower business costs.
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