Amazon confirmed a further 16,000 job cuts in its corporate sector in a blog post to employees on Wednesday, completing a move to cut around 30,000 corporate jobs that began last October.
The job cuts aimed to strengthen the company by “reducing layers, increasing ownership and removing bureaucracy” at the online retail giant, top human resources official Beth Galetti wrote.
The 30,000 jobs are a small portion of the more than 1.5 million Amazon employees worldwide, most of whom work in warehouses or distribution centers, but they represent almost 10% of the company’s corporate workforce.
The written announcement came shortly after Amazon mistakenly sent an email appearing to refer to the layoff plan as “Project Dawn” to some Amazon Web Services staff, unsettling employess.
More cuts possible, but not the start of a ‘new rhythm’ of regular cuts
Galetti did hint at further cuts, saying that some teams would continue to “make adjustments as appropriate.” However, she also tried to assure staff it was not a sign of a new broader pattern.
“Some of you might ask if this is the beginning of a new rhythm — where we announce broad reductions every few months,” Galetti said in Wednesday’s note. “That’s not our plan.”
The post did not go into detail on which business units would be affected or to what extent.
AI set to impact workflows, demand down after pandemic-era peak
Amazon’s CEO Andy Jassy, who took over from founder Jeff Bezos in 2021, said last summer that the increased use of AI tools would lead to increased automation of duties and to corporate job losses.
Amazon has also said that it overhired when it bumped recruitment during the COVID pandemic, when more consumers turned to home deliveries and online retail amid either lockdowns or self-imposed restrictions on movement.
Various tech and delivery companies ramped up recruitment during the COVID pandemic but have recently started restructuring.
UPS, Pinterest and ASML all announced job reductions in recent days.
Edited by: Farah Bahgat
