Amazon Plans To Layoff At Least 30,000 Corporate Jobs

Amazon plans to layoff at least 30,000 corporate jobs, and yeah, that’s a big deal. This isn’t just a small cut here or there — it’s one of the largest layoffs Amazon has ever done for its corporate staff. Think about it: out of roughly 350,000 corporate employees, about 10% might be shown the door. This move comes as Amazon tries to tighten its belt after hiring too many people during the pandemic and now wants to lean on artificial intelligence (AI) to do some of the work.

Amazon plans to layoff at least 30,000 jobs mainly because things have changed since the crazy growth spurt during the pandemic. Back then, demand was through the roof, and Amazon needed a lot of people to keep things running. But now, as business settles down, holding onto so many employees is just too costly. Plus, inflation, rising interest rates, and slower customer spending have squeezed Amazon’s profits, making it clear that the company needs to be more efficient.

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This latest round isn’t the first time Amazon plans to layoff corporate jobs. In fact, back in late 2022 and into 2023, Amazon cut about 27,000 jobs in two big waves. Those previous layoffs hit many parts of the business like Web Services, advertising, and devices. But none of those cuts are as large as what’s planned now.

The layoffs will hit several departments like human resources (they call it People Experience and Technology), operations, devices, and corporate infrastructure teams. Some estimates say up to 15% of HR roles alone might go. Managers are already being prepped to tell employees about these layoffs carefully.

Why the big focus on AI? Well, CEO Andy Jassy talked about this earlier in the year. He warned that AI and automation would make some corporate jobs unnecessary. Basically, as Amazon uses AI more, the need for some people will go down because machines and programs can do those jobs faster and cheaper. So, Amazon isn’t just cutting jobs to save money, they’re shifting their whole business to make AI a bigger part of how they work.

For the folks losing their jobs, Amazon usually offers a severance package. That means some continued pay, often around two months, plus benefits and extra money based on how long they worked there. Some employees have also been given chances to leave voluntarily for a set payout, which can be better than waiting to be laid off. But there are worries about “silent sacking”, where employees feel pushed out by tough demands or forced moves instead of getting a proper layoff.

It’s worth noting these cuts are mainly for corporate roles. Amazon is still hiring for its warehouse and delivery jobs, especially during the busy holiday season. So, the frontline workers probably won’t see the same kind of layoffs.

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This big layoff comes as Amazon keeps spending heavily on AI and its cloud business, trying to stay ahead in tech. Other big companies like Meta, Microsoft, and Google have also cut jobs recently as they deal with similar challenges.

In summary, Amazon plans to layoff at least 30,000 corporate jobs as part of a huge shift to cut costs and use more AI. It’s a sign of how even giant companies have to change fast to keep up with tech and market pressures. If you know someone working at Amazon, this probably feels like a tense time with lots of uncertainty, but the company is betting big on AI shaping its future.
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