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Layoffs

Amazon to Cut 14,000 Corporate Jobs as it Doubles Down on Artificial Intelligence

Strategic Insights

— 1 min read

As Amazon continues to prioritize its aggressive spending on artificial intelligence, the company is gearing up to slash costs by cutting 14,000 corporate jobs. This move is part of a larger effort to reduce bureaucracy, remove layers, and shift resources to focus on the company's "biggest bets" and customer needs. Amazon's executive in charge of human resources, Beth Galetti, has emphasized that this decision is driven by the rapid pace of change in the industry, with artificial intelligence representing the "most transformative technology we've seen since the internet."

Key Takeaways:

  • Amazon plans to cut 14,000 corporate jobs, in addition to another round of corporate cuts expected in January, totaling approximately 27,000 job losses.
  • The company had $18 billion in profit in the latest quarter and has increased spending on data centers that develop leading artificial intelligence systems.
  • Amazon's capital expenses, including data centers, are expected to top $120 billion this year, up almost 50 percent from last year.
  • The company's chief executive, Andy Jassy, has stated that efficiency gains from using A.I. would shrink the company's corporate work force over the next few years.
  • Amazon is also looking to rein in the growth of its warehouse and other blue-collar workers, with plans to use automation to avoid hiring more than 600,000 warehouse employees in a decade.
  • The company last saw widespread layoffs almost three years ago, in a series of cuts over several months that trimmed 27,000 positions.

Statistics:

  • 14,000: Number of corporate jobs Amazon plans to cut.
  • $18 billion: Amazon's profit in the latest quarter.
  • $120 billion: Amazon's capital expenses, including data centers, expected for this year, up 50% from last year.
  • 1.5 million: Number of Amazon employees.
  • 600,000: Number of warehouse employees Amazon plans to avoid hiring in a decade through automation.
  • 15,000: Number of Microsoft roles cut in the early summer.
  • 1,800: Number of Target corporate jobs being trimmed.
  • 600: Number of Meta jobs laid off.

Sources:

  • "Amazon Plans to Cut 14,000 Jobs, Citing Need to Reduce Bureaucracy," The New York Times.
  • "Amazon Axes Artificial Intelligence Team," The Verge, attribution to Jason Karaian.
  • "How Amazon Plans to Cut 14,000 Jobs in the Next Year," Bloomberg Businessweek, attribution to Jason Karaian.

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