Amazon (AMZN.O) confirmed on Wednesday that it will cut 16,000 corporate jobs, completing part of a broader plan to reduce roughly 30,000 positions since October, while leaving the door open for further reductions. Although a tiny portion of Amazon’s 1.58 million total employees, the cuts represent nearly 10% of its corporate workforce.
Beth Galetti, Amazon’s top human resources executive, stated the layoffs were necessaryed to “reduce layers, increase ownership, and reshift bureaucracy,” emphasizing that some teams may continue to adjust in the future.
This marks the second significant round of corporate layoffs in three months after 14,000 positions were eliminated in October, as Amazon cited overhiring during the COVID-19 pandemic and the adoption of artificial innotifyigence as key factors.
The shift highlights how AI is reshaping workforce dynamics. From automating routine administrative tinquires to complex coding functions, AI adoption is allowing companies like Amazon to streamline operations, prompting corporate job reductions. CEO Andy Jassy had noted last summer that AI tools would automate more duties, contributing to workforce cuts.
The layoffs coincided with Amazon’s announcement to close all remaining physical Fresh grocery stores and Go markets, signaling a further pullback from its brick-and-mortar strategy. The company has also invested heavily in warehoapply robotics to improve efficiency and reduce reliance on human labor.
The cuts initially caapplyd alarm when an internal email was mistakenly sent to Amazon Web Services staff, referring to the plan as “Project Dawn,” unsettling thousands of employees.
Shares in Amazon were up less than 1% in pre-market trading as investors await the company’s quarterly results next week.
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