Amazon Gears For Massive Job Cuts, Will Lay Off 30,000 Employees

Amazon is preparing for massive layoffs this year, eliminating 30,000 corporate roles from this week. This cut-off will impact multiple divisions, including AWS, Operations, and Human Resources. 

The motive behind this sudden move is to cut down expenses and boost efficiency under the leadership of CEO Andy Jassy. Let’s know more about it further.

Amazon’s Biggest Ever Layoff: What Impact Will It Have?

Amazon’s upcoming massive layoff, starting Tuesday, will affect 10% of its 350,000 corporate workforce, a fraction of its 1.55 million employees. The layoff notices will be emailed to the employees this week.

With these recent job cut announcements, the departments affected are Devices, Amazon Web Services, and Human Resources (PXT), which will also see a 15% cut in their workforce.

Understanding CEO Andy Jassy’s Lean Management Strategy

The decision of large-scale layoffs aligns with the Lean Management agenda of CEO Andy Jassy. His goal is to simplify Amazon operations, remove unneeded bureaucratic layers, boost accountability, and enhance the efficiency of Artificial Intelligence. Besides these, he is also looking to end middle management roles. 

Restructuring Amazon’s Corporate Structure

Amazon did enforced the strict five-day working rule and wanted employees to follow it. However, with fewer resignations than expected, it forced the company to opt for layoffs instead. Those failing to comply with rules are marked with ''Voluntarily Quit'' and may not receive severance pay.

According to analysts, this move signals the revamping of Amazon's corporate structure with the help of AI. The rise in the use of machine learning tools has led to the replacement of back-office roles. 

No Effect On Share Despite Layoff

Despite the recent layoffs, Amazon's share price has remained stable with a slight increase. Investors have also appreciated the company's stance on improving profits and saving costs. 

Now, for the holiday season, it will be initiating a temporary hiring of 2.5 lakh seasoned workers. 

Encouragement for Other Tech Giants

Amazon's initiative of large-scale layoffs has influenced other tech giants like Microsoft, Intel, and Google to trim their staff and increase work efficiency with AI tools.

About Amazon

Amazon.com, Inc., is an American multi-national company engaged in e-commerce, online advertising, AI, cloud computing and digital streaming. 

It was established by Jeff Bezos in Bellevue, Washington, in 1994. Earlier, it began its journey as an online marketplace for books, but later expanded to different product categories. 

Amazon is a part of the Big Tech Group alongside Microsoft, Meta, Apple, Nvidia and Alphabet. It distributes a variety of streaming content through Amazon Prime Video, Twitch, MGM+, and Amazon Music. 

The company also publishes books through Amazon Publishing, its publishing arm. Amazon's MGM Studios oversees the production and distribution of content for film and television.