Amazon is slashing its workforce to streamline operations, reduce bureaucracy, and increase reliance on artificial intelligence.
Amazon has announced plans to eliminate approximately 14,000 jobs across its corporate workforce. Beth Galetti, Senior VP of People Experience and Technology, stated that the layoffs are part of a broader effort to streamline operations and improve efficiency. Galetti wrote,
“The reductions we’re sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets and what matters most to our customers’ current and future needs,”.
The affected employees were informed of their job status through an email: “You are no longer required to perform work on Amazon's behalf.” The company is offering most impacted workers 90 days to search for new roles internally and will prioritize them in future hiring processes. Those unable to secure new positions will receive severance packages and outplacement support.
Amazon’s Focus on Automation and Efficiency
The layoff of Amazon employees is in line with the claims of the CEO, Andy Jassy, earlier in the year. He mentioned that the number of people working at Amazon would probably reduce as more of the work is performed by AI to accomplish the work that was traditionally done by humans.
UPS Layoffs Linked to Amazon's Strategy
United Parcel Service (UPS) has announced plans to cut approximately 48,000 jobs. This includes 34,000 drivers and 14,000 management positions, as part of a major reorganization. This move is linked to a planned reduction in Amazon's package delivery services, aiming for a more efficient operating model and phasing out unprofitable operations.
The shipping giant's driver workforce has fallen by about 34,000 from a year ago, with some departures through a "voluntary separation program." Additionally, UPS has closed 93 buildings in the United States this year and deployed additional automation in 35 facilities.
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