Amazon layoffs: Recently, news emerged that Amazon is planning to lay off up to 15 percent of its workforce from its HR department. Fortune reports that Amazon’s People Experience and Technology teams will be most affected.
Amazon layoffs: This year has already seen significant layoffs, and more are about to happen. Recently, news emerged that Amazon is planning to cut up to 15 percent of its workforce from its HR department. According to a Fortune report, Amazon’s People Experience and Technology teams will be the most affected by these layoffs, with other departments also likely to be impacted.
At this time, there’s no confirmation on how many employees will be affected by these layoffs. Amazon has been laying off employees in small groups for almost the entire year. The company’s efforts to increase efficiency and increase automation are a key reason why the restructuring is ongoing, and speculation is rife that Amazon will lay off more people in the coming months.
What are the main reasons for layoffs at Amazon?
These layoffs are primarily driven by Amazon’s significant investments in its cloud operations and AI. As promised, Amazon is spending over $100 billion on capital investments this year, with a significant portion going toward building next-generation data centers to support AI infrastructure for enterprise clients and internal use.
Amazon CEO Andy Jassy said that the new era will be defined by AI, and not every employee can be a part of that change. Jassy has already urged employees to familiarize themselves with the company’s AI initiative. He said, “Those who embrace this change, become familiar with AI, help us build and improve our AI capabilities internally, and better serve customers will be well-positioned to have a high impact and help us reshape the company.”
But his message also contained a clear warning. “We expect this to reduce our overall corporate headcount, as the widespread use of AI across the company will provide us with increased efficiency,” Jassy said.
