Amazon Announces Resignation of 16,000 Employees Globally in Restructuring

E-commerce giant Amazon has announced a new round of layoffs, cutting nearly 16,000 corporate jobs worldwide.This move is part of a broader restructuring of the company, which aims to optimize its operations after a period of accelerated hiring during the pandemic and integrate new technologies such as artificial intelligence.

Restructuring and AI

Amazon is implementing significant restructuring, aiming to “reduce layers, increase ownership and remove” bureaucracy, as stated by Beth Galetti, senior vice president of the company.This initiative aims to make the organization more agile and efficient.Also, the company is exploring the use of generative artificial intelligence to automate corporate tasks, which could lead to a continued reduction in the corporate workforce in the coming years, according to CEO Andy Jassy.

Context of the layoffs

This new wave of layoffs follows an earlier cut in October when about 14,000 employees were laid off. Together, these actions represent an effort to adjust the workforce following a dramatic growth during the COVID-19 pandemic, when demand for e-commerce and cloud services soared.

Support for Affected Employees

For U. S.-based employees, Amazon will offer 90 days to pursue new internal opportunities. Those who fail to secure a new position or choose not to search will be eligible for layoff packages, job placement services, and health insurance benefits. Details for employees outside the U. S. may vary by local regulations.

Broader Economic Scenario

Amazon layoffs come against a backdrop of slowing hiring in many tech and retail companies. Giants such as Meta and Microsoft have also made cuts to their workforces.The U. S. labor market has shown reluctance to add new jobs, even as economic growth has been influenced by economic uncertainties and the advancement of AI.

Additional Strategic Changes

In addition to staff cuts, Amazon also announced the closure of all its physical Amazon Go and Amazon Fresh stores, focusing its efforts on Whole Foods Market stores and online grocery delivery.