Amazon confirms cutting 16,000 jobs globally in second major layoff round

Dubai: Amazon said on Wednesday it will eliminate about 16,000 jobs worldwide, extending a restructuring drive that began in October and bringing planned corporate workforce reductions to roughly 30,000 roles.

The latest cuts mark the company’s second major round of layoffs in three months and are part of efforts to streamline operations after rapid hiring during the pandemic and to reshape teams as artificial intelligence becomes more embedded across the business.

Amazon previously cut about 14,000 corporate roles in October, when chief executive Andy Jassy said the company needed to reduce management layers and internal bureaucracy that had built up during years of fast expansion.

The new reductions are expected to affect staff across several divisions, including Amazon Web Services, retail, Prime Video and human resources.

Increase ownership

Beth Galetti, Amazon’s senior vice president of people experience and technology, said the company was continuing work to “reduce layers, increase ownership, and remove bureaucracy,” adding that some teams completed restructuring in October while others finished their plans more recently.

She said Amazon does not intend to make large-scale layoffs a recurring feature, though teams would continue to review their structures and make changes when needed.

The job cuts come as Amazon pushes to improve efficiency while expanding its use of artificial intelligence. Jassy has previously told employees that wider adoption of AI tools would automate some tasks and lead to a smaller corporate workforce over time.

Small workforce share

The reductions represent a small share of Amazon’s total workforce of more than 1.5 million people, most of whom work in warehouses and fulfilment centres. Corporate employees make up a much smaller portion of that total.

Amazon is among several large technology companies that expanded aggressively during the pandemic and have since moved to cut costs, flatten management structures and redirect spending toward AI and automation.

The company has also been increasing investment in warehouse robotics to speed up deliveries and reduce labour intensity, while pouring billions of dollars into data centres and infrastructure to support AI services, particularly within its cloud division.

Amazon is scheduled to report quarterly earnings next week.

- With inputs from Agencies