August M
Artificial intelligence is increasingly changing how big companies organise their workforces, automating tasks that once required large teams. From administration to software development, the technology is accelerating decisions that are now leading to fewer corporate roles.
Reuters reports that Amazon has become one of the latest examples of this shift, announcing a fresh round of job cuts as it expands the use of AI tools across the company.
Technology drives change
Amazon chief executive Andy Jassy said last summer that wider adoption of artificial intelligence would inevitably automate parts of the business. That, he warned, would result in job losses, particularly in corporate functions.
At the World Economic Forum earlier this month, senior executives told Reuters that while AI would eliminate some roles, it could also create new ones. Two of them added that companies sometimes use AI as justification for cuts that were already planned.
The comments underline a broader recalibration under way across the tech sector.
Layoffs confirmed
Against that backdrop, Amazon said it will cut 16,000 jobs worldwide, marking the second major round of layoffs in three months. The company is attempting to undo what it sees as over-hiring during the COVID-19 pandemic.
Reuters previously reported that Amazon aimed to reduce around 30,000 corporate roles in total. The latest cuts are expected to affect staff in Amazon Web Services, retail operations, Prime Video and human resources.
In late October, Amazon had already eliminated about 14,000 white-collar positions.
No fixed rhythm
Beth Galetti, senior vice president of people experience and technology, said the company does not intend to announce broad job reductions on a regular schedule.
“Some of you might ask if this is the beginning of a new rhythm,” she said. “That’s not our plan.”
Jassy has stressed the need to simplify Amazon’s structure by cutting layers of management and reducing what he describes as excessive bureaucracy.
Scale and impact
If completed, the reductions would amount to nearly 10% of Amazon’s corporate workforce. However, they represent only a small fraction of the company’s total 1.58 million employees worldwide.
The majority of Amazon’s staff work in fulfillment centers and warehouses, areas that have so far been less affected by corporate restructuring.
Wider industry shift
Amazon is not alone in reassessing its workforce. Other tech giants, including Meta Platforms and Microsoft, rapidly expanded during the pandemic and have since scaled back.
Amazon has also increased investment in warehouse robotics, aiming to speed up deliveries, lower costs and reduce reliance on human labor.
The company is due to report its quarterly earnings next week.
Sources: Reuters
