Amazon Prepares for Major Layoffs, Threatening 14,000 Jobs
Amazon is poised to execute significant layoffs, potentially affecting 14,000 jobs. This new wave follows an earlier round in October, where the company reduced its workforce by 14,000. In total, Amazon aims to cut approximately 30,000 employees from its corporate structure.
Details of the Upcoming Layoffs
According to reports, the second round of layoffs could commence as soon as Tuesday. The affected departments include:
- Amazon Web Services
- Retail
- Prime Video
- People Experience and Technology
This decision comes as Amazon focuses on reducing costs amid rising investments in artificial intelligence. The company currently employs around 350,000 corporate staff out of a total workforce of approximately 1.56 million.
Impact of Previous Layoffs
The October layoffs constituted nearly 4% of Amazon’s workforce. In a communication to employees, Beth Galetti, senior vice president of People Experience and Technology, stated that those impacted would have 90 days to seek new roles within the company.
Moreover, Amazon has committed substantial financial resources towards enhancing its artificial intelligence infrastructure. Recently, the company announced an investment of $10 billion for a campus in North Carolina, alongside similar financial commitments for data centers in Mississippi, Indiana, and Ohio.
Context of Workforce Reduction
These layoffs represent a broader trend among major tech companies. Following explosive growth during the pandemic, Amazon and others have had to realign their spending with current market realities. In 2023, Amazon previously cut 27,000 jobs, marking one of the largest workforce reductions in its history.
Market Conditions
Despite these layoffs, overall U.S. jobless claims remain low. Recent data from the Labor Department indicates that applications for unemployment benefits rose slightly to 200,000, showing a strong labor market despite signs of softness. The unemployment rate has dipped to 4.4%.
This story is still developing, and further updates are expected as new information comes to light.
