Amazon is set to reduce its corporate workforce by 14,000 positions, part of a restructuring effort announced to employees recently. The company is taking steps to support affected workers, including offering 90 days for them to seek new roles internally. They have pledged that recruiting teams will prioritize current staff for new positions within the company.
The move comes as Amazon aims to manage costs and rectify previous overhiring during the heightened demand of the pandemic. Different divisions, including Human Resources, Operations, Devices and Services, and Amazon Web Services, may feel the impact of these cuts.
Managers have undergone special training to prepare for discussions with their teams as notifications are issued to affected staff. For those unable to find new jobs within Amazon or who choose not to pursue them, the company has committed to providing transition support that includes severance pay and health benefits.
Earlier this year, CEO Andy Jassy initiated various measures to streamline operations, which includes reducing management levels and focusing on identifying inefficiencies. A full return-to-office mandate this year was expected to encourage voluntary resignations, thus lowering headcount without severance costs. However, the results did not meet expectations, leading to this larger round of layoffs.
Jassy has previously indicated that the integration of artificial intelligence tools will likely influence future job roles, stating that fewer workers may be needed for some current tasks. He emphasized the need for employees to shift towards new types of work as technology evolves.
As layoffs continue to make headlines across the tech industry, over 200 tech companies have collectively cut around 98,000 jobs this year. Notable firms like Intel, Microsoft, Salesforce, Meta, and Google have also announced significant workforce reductions, reflecting broader challenges in the tech sector.
