A train left today new wave of layoffs at Amazon, the largest in recent years. After initial rumors, which spoke of 30 fewer jobs, the group has clarified that the cuts will affect 14 employees in the Corporate division, equal to approximately 4% of corporate staff.
Confirmation came from Beth Galetti, Senior Vice President of People Experience and Technology, through an official post on the company blog which reports the letter sent to workers this morning. The decision is based on the desire to adapting the corporate structure to the artificial intelligence revolution, which has now become the cornerstone of the Seattle group's strategies.
"This generation of AI is the most disruptive technology we've seen since the internet," Galetti writes. "It's enabling companies to innovate much faster than ever before, in existing and entirely new market segments. We believe we need to be more streamlined, with fewer layers and more responsibility, to move faster for our customers and our business."
A major turning point for the giant founded by Jeff Bezos, closing out its post-Covid expansion and ushering in a new era of efficiency, driven by artificial intelligence. The announcement, which had been anticipated by the media, comes just hours after the release of its quarterly results. the pandemic Amazon had taken over at a frenetic pace to cope with the explosion of global e-commerce. Today the demand has normalized and artificial intelligence has become the new strategic driverThe Seattle-based group is trying to recalibrate its structure to cut costs and increase productivity.
Jassy's strategy: less bureaucracy, more AI
The axe had been in the air for months. In June Andy jassy, CEO since 2021, had warned employees that “artificial intelligence would have reduced the need for staff in several areas”.
In recent months, Jassy has introduced a series of internal reforms to "streamline bureaucracy" and has even launched an anonymous hotline to report inefficiencies. The goal is to cut middle management levels and automate more and more processes. According to internal sources cited by Fortune, up to 15% of HR staff could be affected by the cuts.
In his post, Galetti explained that Amazon will offer 90 days for affected workers to seek new internal positions, with priority given to recruitment processes. For those who cannot find an alternative position, the company has provided severance pay, relocation services, and health coverage.
This move seeks to mitigate the social impact of the restructuring, although its scope remains significant: it is still the largest cut since the end of 2022, when Amazon eliminated 27 jobs in the midst of its "post-pandemic correction" phase.
The most affected areas: HR, logistics, cloud and devices
The cuts are not limited to a single sector. They will be key divisions such as People Experience & Technology were affected (human resources), logistics, cloud services, devices e GamingSome internal sources also speak of reorganizations in the advertising and operations departments.
The measure mainly involves corporate personnel, but according to the New York Times the second phase of layoffs, scheduled for early 2026, could also extend to warehouses, reaching a total of 160 jobs by 2027.
The AI Effect: Human Work Under Pressure
Artificial intelligence is the big variable. Amazon is introducing generative AI systems and autonomous agents capable of replace entire chains of administrative and operational tasks. Furthermore, the company has the arrival of tactile robots has been announced, machines capable of manipulating objects with almost human dexterity, which should automate up to 75% of logistics operations.
A process that promises billions of dollars in annual savings, but also a drastic reduction in the workforce. “It's difficult to know where all this will lead us, but we expect an overall reduction in the company's workforce in the coming years“, Jassy wrote in an internal memo.
All tech giants are reducing staff numbers
Amazon is not aloneThe wave of cuts follows a trend now widespread among Silicon Valley's big names. Over the past three years, Microsoft, Meta, and Alphabet (Google) have collectively laid off tens of thousands of employees, reversing the overhiring trend of 2020-2021.
The pandemic had inflated demand and prompted aggressive staff and infrastructure expansion. But with the end of the health emergency and the advance of automation, that growth proved unsustainable.
And while the company is silent on the details, the market reacts positivelyYesterday, on the eve of the announcement, Amazon shares rose 1,2%, ahead of the release of quarterly results scheduled for later this week.
Last update 14,05am
