Amazon Axes 16,000 Jobs in Second Major Layoff Wave: What It Means for Australian Workers

Amazon's Latest Job Cuts: A Deep Dive into the Tech Giant's Restructuring

Amazon has confirmed the layoff of approximately 16,000 employees, marking its second significant workforce reduction in just a few months. This move comes as the company aims to streamline operations and adapt to the rapidly evolving technology landscape, particularly with the rise of artificial intelligence (AI).

Impact on Global and Australian Workers

The job cuts are primarily affecting workers in the United States, Canada, and Costa Rica. It remains unclear whether Australian employees will be impacted, as Amazon Australia has been contacted for comment. This uncertainty highlights the global nature of such corporate decisions and their potential ripple effects on local job markets.

The company previously axed 14,000 jobs in October. (AP)

Behind the Announcement

The layoffs were announced by Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, in an internal email that was accidentally shared with employees. Galetti emphasized that the organization is working to reduce layers, increase ownership, and remove bureaucracy to become more agile. "I recognise this is difficult news," she stated in a blog post.

This follows a previous round of cuts in October, where 14,000 jobs were eliminated as part of CEO Andy Jassy's strategy to keep Amazon nimble in the face of technological disruptions. Jassy has been vocal about the role of AI in shaping the company's future, noting that efficiency gains from AI will likely lead to workforce reductions.

CEO Andy Jassy admits the company will shift towards greater use of AI in the coming years. (AP)

AI and the Future of Work at Amazon

Jassy has bluntly admitted that the integration of Generative AI and agents will change how work is done at Amazon. "We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs," he said. He envisions billions of AI agents being deployed across various industries, signaling a transformative shift in the job market.

Despite the layoffs, Galetti assured employees that this is not the beginning of a new pattern. "Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That's not our plan," she explained. The company continues to hire and invest in strategic areas critical to its future.

Competitive Landscape and Employee Support

Amazon is in fierce competition with tech giants like Microsoft, Google, Meta, and OpenAI, all racing to advance AI technologies. Jassy has clarified that these layoffs are about efficiency rather than cost savings, as the company invests heavily in AI infrastructure.

Affected employees will begin the layoff process immediately. Most will have 90 days to seek new roles internally, while those not rehired will receive severance pay and additional benefits. This approach aims to support workers during the transition.

Jassy's vision extends beyond Amazon, predicting that AI will impact every company and field. "Many of these agents have yet to be built, but make no mistake, they're coming, and coming fast," he warned, underscoring the urgency for workers to adapt to new skill demands.