Article Today, New Delhi:
In a significant workforce reduction, Amazon is set to lay off about 30,000 corporate employees starting Tuesday. The decision marks one of the company’s largest job cuts in recent years, reflecting the growing pressure on global technology firms to streamline operations amid automation and changing business priorities.
Deep Cuts in Human Resources and Corporate Divisions
The company’s Human Resources department will face the steepest reduction, with nearly 15 per cent of positions being eliminated. Other divisions, including Devices, Services, and Operations, will also be affected. While Amazon has conducted smaller rounds of layoffs over the past two years, this round represents a major escalation. Previous cuts included hundreds of roles in its podcasting, AWS, and devices units.
Push to Reduce Bureaucracy
Chief Executive Officer Andy Jassy has initiated a broad organisational restructuring aimed at reducing bureaucratic layers and improving efficiency. According to internal reports, the company has received more than 1,500 complaints related to internal processes and management practices. Amazon has already revised about 450 internal procedures, and several managerial roles are expected to be removed as part of this streamlining effort.
Artificial Intelligence and Job Displacement
Mr. Jassy’s earlier remarks about the growing role of Artificial Intelligence (AI) in automating operations had already sparked speculation about large-scale job cuts. In June, he hinted that employees unable to adapt to new AI-driven workflows might find themselves redundant. The company’s increasing reliance on AI systems for logistics, customer service, and data management has intensified concerns about the future of human roles within the organisation.
Seasonal Hiring Amid Layoffs
Paradoxically, even as corporate employees face termination, Amazon plans to hire around 250,000 seasonal workers to meet holiday demand. This contrast between layoffs and temporary hiring has raised questions about the company’s long-term workforce strategy. Despite the impending cuts, Amazon’s shares rose 1.3 per cent on Monday, closing at USD 227. The company is expected to announce its third-quarter earnings report on Thursday.
Broader Tech Industry Slowdown
The layoffs at Amazon come amid a wider contraction across the global technology sector. So far this year, about 216 companies have announced workforce reductions, leading to nearly 98,000 tech employees losing their jobs. In 2023, the figure stood at over 1.5 lakh. Analysts view these developments as part of a broader correction in the industry, driven by post-pandemic hiring excesses, tighter capital markets, and rapid AI integration.
A Challenging Transition
While Amazon describes the layoffs as part of an effort to “simplify decision-making and optimise operations,” labour analysts warn that such large-scale restructuring may deepen uncertainty among employees. As the tech industry continues its adjustment to AI and automation, the ongoing wave of job cuts underscores a new phase of transformation — one where efficiency increasingly replaces human involvement.
