In a seismic shift for the tech industry, Amazon is poised to launch its second major round of layoffs next week, potentially axing around 30,000 employees. Reports indicate that the surge in artificial intelligence (AI) adoption is driving this drastic measure, as the e-commerce behemoth streamlines operations across key divisions.
The cuts will hit hardest in Amazon Web Services (AWS), human resources, Amazon Prime Video, and the core retail segments. This follows an initial wave in October, where 14,000 white-collar positions were eliminated as part of the broader 30,000-job reduction plan.
Sources cited by Reuters suggest the upcoming layoffs could mirror the scale of the first round. Amazon has yet to issue an official comment on these developments.
An internal memo from October linked the initial cuts to the rising role of AI software, hailing it as ‘the most revolutionary technology since the internet.’ It promised to turbocharge innovation across the company.
However, CEO Andy Jassy clarified during the third-quarter earnings call that the layoffs weren’t fueled by finances or AI alone. ‘This is about culture,’ he stated, pointing to excessive bureaucracy with too many layers and personnel slowing down progress.
These moves mark Amazon’s largest layoffs in its 30-year history, surpassing the 27,000 jobs cut in 2022. Even so, they represent a tiny fraction of its 1.5 million-strong workforce.
Affected employees may receive up to 90 days of pay, during which they can apply for internal roles or seek external opportunities.
Meanwhile, at this week’s World Economic Forum in Davos, tech leaders insisted AI won’t replace human jobs outright but will transform workflows through automation, reshaping how work gets done in profound ways.
