Amazon is set to reduce its global workforce by around 16,000 roles, marking another significant shake-up at the retail and tech giant.
This latest round of layoffs comes just three months after the company cut approximately 14,000 jobs, highlighting the ongoing transformation of its operations.
Most of the positions affected are expected to be in the United States, while some roles in the UK will also be impacted, though the company has not disclosed exact figures for its UK staff.
Streamlining Operations Amid AI Growth
Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, shared the reasoning behind the cuts in a message to staff.
She explained that the company is working to strengthen its organization by reducing layers, increasing ownership, and removing bureaucracy.
Galetti also addressed concerns about whether frequent layoffs are becoming the norm, reassuring employees that this is not the beginning of a new rhythm of recurring job reductions.
The announcement comes as Amazon increasingly integrates artificial intelligence into its operations.
CEO Andy Jassy has previously indicated that AI adoption would allow the company to streamline certain roles, potentially reducing staffing needs in the future.
Workforce Numbers and Operational Changes
At the end of September last year, Amazon employed around 1.57 million people globally, with about 350,000 in corporate roles and the remainder in warehouse and fulfillment operations.
In the UK, Amazon’s workforce totals roughly 75,000 employees.
The layoffs coincide with other strategic shifts, including the closure of Amazon’s remaining Fresh and Go stores across the United States, with the company opting to focus on its Whole Foods operations.
In the UK, the closure of 19 Amazon Fresh stores last September resulted in around 250 job losses, underscoring the ongoing adjustments to its retail footprint.
Reactions from Unions and the Public
The cuts have drawn sharp criticism from unions and workers’ advocates.
Rachel Fagan, a representative of the GMB union, argued that Amazon is prioritizing profits over people, stating that the company cannot be trusted to act in the best interests of workers in the UK.
She warned that the loss of thousands of jobs would have a significant impact on towns and cities, framing Amazon as a company focused more on profits than on its employees or local communities.
Support for Affected Employees
In her message, Galetti outlined how Amazon plans to support employees whose roles are being eliminated.
Employees in the US will have time to search for alternative roles within the company, while those who are unable to secure a new position—or choose not to—will receive support including severance pay, outplacement services, and continued health insurance where applicable.
Galetti emphasized that, even while reducing staff in some areas, Amazon continues to invest in strategic functions critical to its future growth.
She expressed gratitude to teams for their ongoing contributions, highlighting the company’s commitment to building for the future despite the challenges posed by these workforce changes.
Looking Forward
Amazon’s latest layoffs are part of a broader effort to adapt to a rapidly changing business environment.
The company is balancing workforce reductions with strategic investments aimed at efficiency and growth.
While the news is difficult for those affected, Amazon frames these changes as necessary steps to remain competitive and innovative in a landscape increasingly influenced by technology and AI.
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