Amazon has confirmed plans to eliminate approximately 16,000 jobs globally in a fresh round of lay-offs, as the retail technology giant continues its efforts to streamline operations and reduce bureaucracy.
Latest Cuts Follow Recent Reductions
This announcement comes only months after Amazon axed about 14,000 positions in October, marking a significant workforce reduction within a short timeframe. The company disclosed the news in a blog post to staff, emphasising that these cuts are part of an ongoing organisational strengthening initiative.
Impact on UK Operations
While the majority of the job losses are expected to occur in the United States, Amazon's UK operations will also see some positions removed. The company has not specified the exact number of UK workers affected, but it employs around 75,000 people across its various operations in the country.
Beth Galetti, senior vice-president of people experience and technology at Amazon, addressed concerns in the blog post, stating: "As I shared in October, we’ve been working to strengthen our organisation by reducing layers, increasing ownership and removing bureaucracy." She added that this is not intended to become a regular occurrence, saying: "Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan."
Support for Affected Employees
In the United States, impacted staff will be given a 90-day period to search for new roles internally within Amazon. Those who are unsuccessful or choose not to pursue another position will receive severance pay, outplacement services, and health insurance benefits. This approach mirrors the support offered in previous lay-off rounds.
Historical Context and Recent Missteps
These lay-offs represent Amazon's largest job cuts since 2023, when the company reduced its workforce by 27,000 jobs. The announcement was preceded by an embarrassing error, where Amazon Web Services cloud computing employees were prematurely alerted about the lay-offs. An email sent on Tuesday, signed by Colleen Aubrey, senior vice-president of applied AI solutions at AWS, incorrectly stated that impacted employees in the US, Canada, and Costa Rica had already been informed of their job losses.
Ms Aubrey wrote in the email: "Changes like this are hard on everyone. These decisions are difficult and are made thoughtfully as we position our organisation and AWS for future success."
Broader Strategic Shifts
Last year, Amazon's president Andy Jassy hinted at potential staff reductions in the coming years as the company increasingly integrates artificial intelligence to automate various tasks. This aligns with a broader trend in the tech industry towards efficiency and cost-cutting measures.
Amazon employed approximately 1.57 million people at the end of September last year, with about 350,000 in corporate roles and the majority working in warehouses. The latest job cuts are part of a wider restructuring that includes the closure of physical retail stores.
Store Closures and Union Response
Earlier this week, Amazon confirmed it would shut down its remaining Amazon Fresh and Go grocery stores across the United States, shifting focus to its Whole Foods Market business. In the UK, the company announced the closure of 19 Amazon Fresh stores last September, affecting around 250 jobs.
Rachel Fagan, an organiser for the GMB union, criticised Amazon's actions, stating: "Amazon is showing itself for what it is – a company that cannot be trusted to do the right thing by working people in the UK. Now is the time for decision makers to see Amazon for what it is, a company fixated on eye-watering profits at the expense of workers and local people."
The lay-offs underscore ongoing challenges in the retail and tech sectors, as companies navigate economic pressures and adapt to evolving market demands.
