Amazon is set to implement significant workforce reductions, planning to cut around 30,000 corporate jobs. This move is part of the company’s effort to manage expenses effectively. The job cuts will commence on Tuesday, according to sources familiar with the situation.
Details of Job Cuts at Amazon
This round of layoffs will target various divisions, affecting approximately 10% of Amazon’s corporate employees, which number around 350,000. Although the cuts are substantial, they represent a small fraction of Amazon’s total workforce of 1.55 million employees.
- Departments Affected:
- Human Resources
- Devices and Services
- Operations
- Previous Cuts: This represents the largest job reduction since late 2022, when Amazon eliminated around 27,000 jobs.
CEO’s Strategy and Financial Goals
Amazon’s CEO, Andy Jassy, is focused on reducing bureaucracy within the company. This initiative includes minimizing the number of managerial positions and increasing the use of artificial intelligence to automate routine tasks. Earlier this year, Jassy established an anonymous feedback line, resulting in over 1,500 comments and more than 450 process changes aimed at improving efficiency.
According to reports, Amazon’s human resources division could face cuts of about 15%. The specific details regarding which teams will be impacted by these layoffs, however, remain unclear and may evolve over time as the company’s financial priorities change.
Market Reaction
Following the announcement, Amazon’s shares saw a slight increase of 1.2%, reaching $226.80. The company is scheduled to report its third-quarter earnings on Thursday, which may further affect stock movements and stakeholder reactions.
As Amazon continues to adjust its corporate structure, the focus remains on balancing growth with operational efficiency in a rapidly changing market landscape.
