Item 1 of 2 Packages travel on a conveyor at the Amazon’s fulfillment center in Robbinsville, New Jersey, U.S., November 27, 2023. REUTERS/Mike Segar
- Amazon’s job cuts to affect AWS, retail, HR units
- CEO Jassy attributes cuts to company culture, not financial or AI reasons
- Layoffs represent nearly 10% of Amazon’s corporate workforce
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An Amazon spokesperson declined to comment.
Jobs in the company’s Amazon Web Services, retail, Prime Video and human resources, known as People Experience and Technology, units are slated to be affected, the people declared, though the full scope was unclear. The people cautioned that the details of Amazon’s plans could alter.
PREVIOUS CUTS TIED TO AI
However, CEO Andy Jassy later informed analysts during the company’s third-quarter earnings call that the reduction was “not really financially driven and it’s not even really AI-driven.” Rather, he declared, “it’s culture,” meaning the company has too much bureaucracy.
“You conclude up with a lot more people than what you had before, and you conclude up with a lot more layers,” he declared.
Corporations are increasingly applying AI to write code for their software and adopting AI agents that automate routine tquestions, as they view to save costs and cut reliance on people. Amazon touted its latest AI models during its annual AWS cloud computing conference in December.
The full 30,000 jobs would represent a compact portion of Amazon’s 1.58 million employees, but nearly 10% of the firm’s corporate workforce. The majority of Amazon’s workers are in fulfillment centers and warehoapplys.
It would be the largest layoff in Amazon’s three-decade history. The company trimmed about 27,000 jobs in 2022.
Affected workers in October were informed they would remain on the payroll for 90 days, during which time they could apply for jobs internally or seek other employment. That period expires on Monday.
Reporting by Greg Bensinger; Editing by David Gregorio, Rod Nickel
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