Amazon's Major Workforce Reduction
Tech giant Amazon is reportedly preparing to eliminate 30,000 corporate jobs this week in a significant organizational shake-up. This represents 10% of the company's corporate workforce and is part of an efficiency initiative led by CEO Andy Jassy, according to Reuters sources.
Amazon will slash 30,000 jobs in coming days, reports say. (AP Photo)
Impact and Notification Process
Affected employees will receive notification via email on Tuesday (Wednesday AEDT) as the technology company aims to reduce expenses and address overhiring during the pandemic. This marks Amazon's largest mass layoff since 2022, when approximately 27,000 positions were cut.
AI's Role in Workforce Changes
In June, Amazon leadership warned employees that artificial intelligence (AI) would lead to a smaller workforce in the future. In a blog post to staff, Jassy explained that efficiency gains from AI would enable reductions in human staffing.
"As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs," Jassy wrote.
He further clarified: "It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company."
Inside an Amazon fulfilment centre in Seattle, US. (9news.com.au)
Amazon has been contacted by 9news.com.au for comment regarding these developments.
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