Amazon to Cut 16,000 Jobs Worldwide in Second Layoff Round as AI Use Expands

Amazon on Wednesday announced plans to cut 16,000 jobs globally in its second major round of layoffs in three months, as the company restructures following pandemic-era over-hiring and accelerates the use of artificial intelligence tools.

Reuters reported last week that Amazon was preparing a fresh round of job cuts as part of a wider effort to eliminate around 30,000 corporate roles. The layoffs are expected to impact employees across Amazon Web Services, retail, Prime Video and human resources.

The company had already eliminated 14,000 white-collar positions in late October, with chief executive Andy Jassy emphasising the need to reduce layers of bureaucracy, streamline operations and cut back on the number of managers.

“Some of you ‌might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan,” said Beth Galetti, senior vice president of people experience and technology at Amazon.

The latest job cuts highlight the growing impact of artificial intelligence on corporate workforce structures. Advances in AI assistants are enabling companies to perform tasks ranging from routine administrative work to complex coding with greater speed and accuracy, fuelling rapid adoption across industries.

Jassy had said last summer that expanded use of AI tools would automate more functions, leading to job losses in corporate roles.

Earlier this month, senior executives attending the World Economic Forum’s annual meeting said that while some jobs would disappear, new roles would also emerge. Two executives told Reuters that AI was being used as a justification by some companies that were already planning workforce reductions.

The 30,000 job cuts would account for a relatively small share of Amazon’s total workforce of about 1.58 million employees, but would amount to nearly 10% of its corporate staff. Most of the company’s employees work in fulfilment centres and warehouses.

Several technology giants, including Amazon, Meta Platforms and Microsoft, sharply expanded hiring during the surge in demand seen during the COVID-19 pandemic and have since moved to restructure their workforces.

Amazon is also increasing investment in robotics across its warehouses to speed up packaging and deliveries, reduce dependence on human labour and lower costs in its e-commerce operations.

The company is scheduled to report its quarterly results next week.

(with inputs from Reuters)