Amazon Layoffs Hit Retail Managers; AWS May Face Cuts Next.

Amazon is undergoing significant layoffs, particularly impacting retail managers. The company’s recent job cuts, which occurred on a Tuesday, have raised concerns about potential further reductions within Amazon Web Services (AWS).

Impact of Amazon Layoffs on Retail Managers

According to internal data, over 78% of the layoffs affected managers in the L5 to L7 categories. This represents early to mid-level management positions within the retail division. The cuts primarily target Amazon’s US operations, highlighting a broader strategy to streamline management.

• More than 80% of the affected roles were in Amazon’s retail segment, including e-commerce, human resources, and logistics.
• The layoffs are part of CEO Andy Jassy’s initiative to reduce bureaucracy, resulting in a 15% reduction in the manager-to-employee ratio.
• Approximately 7,500 US employees were initially notified of their job loss.

Broader Context of Job Cuts

Amazon plans to cut a total of 14,000 corporate positions. This move is aimed at creating a leaner structure to foster innovation. Analysts estimate that the overall layoffs could reach 30,000.

Concerning AWS, around 1% of the recent cuts impacted its workforce. However, there are growing worries among AWS employees about future layoffs. Reports suggest that AWS teams have received instructions to reduce headcount by 5% by 2025 and by 10% the following year.

Strategic Shift and Hiring Practices

HR chief Beth Galetti emphasized that Amazon’s reductions are part of an ongoing effort to operate “like the world’s largest startup.” Despite strong company performance, the rapid advancements in AI technology are influencing staffing decisions.

• A hiring freeze has been implemented in the retail division, limiting new positions to only essential backfills.
• Amazon is simultaneously focusing on expanding its faster delivery networks and grocery operations, both of which carry lower profit margins.
• Investment in robotics, automation, and AI remains a priority for the company to enhance long-term efficiencies.

As Amazon reshapes its workforce, the focus is clearly on improving profitability while adapting to changing market dynamics. Employees await further updates regarding the future of their teams amid these adjustments.