E-commerce and tech powerhouse Amazon is reportedly preparing to reduce its workforce, targeting up to 15% of roles in its human resources department, along with several other positions, according to media reports. A spokesperson for the company, Kelly Nantel, has declined to comment on the matter. This move comes amid broader cost-cutting measures as Amazon seeks to streamline operations and improve efficiency across its global operations.
Why Is This Happening?
The latest round of job cuts is part of Amazon’s ongoing efforts to reduce employee costs amid substantial investments in artificial intelligence (AI) and infrastructure. According to the report, the company plans to spend over Rs 8.3 lakh crore ($100 billion) in capital expenditure in 2025 to develop AI data centres and cloud computing facilities, both for internal use and for external clients.
Between late 2022 and 2023, Amazon CEO Andy Jassy oversaw approximately 27,000 job cuts, mainly affecting corporate roles, as the company followed other tech giants like Meta and Google in broad workforce reductions.
Andy Jassy Emphasizes AI: ‘Embrace This Change’
According to the reports, In a company memo in June, Amazon CEO Andy Jassy highlighted the significance of AI adoption for employees. “Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company,” he wrote. He added, “We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
Amazon to Hire 2,50,000 Seasonal Workers for Holiday Rush
Despite ongoing layoffs, Amazon is set to recruit 2,50,000 seasonal employees across full-time, part-time, and temporary roles for the upcoming peak holiday season. The company stated that temporary workers will earn $19 per hour, while permanent positions will offer an average pay of $23 per hour. These pay rates are in line with Amazon’s holiday hiring figures over the past two years, according to Bloomberg.
