Amazon Trims Workforce By 16,000, Sharpens Focus On Efficiency, AI

Amazon said on Wednesday it will cut approximately 16,000 jobs worldwide, marking another major round of layoffs as the company rolls back aggressive hiring during the Covid-19 pandemic. The job reductions are expected to affect multiple teams, including corporate and technology roles, as the company seeks to reduce layers of management and improve efficiency.

Between 2020 and 2022, Amazon significantly expanded its workforce to meet surging demand for e-commerce and cloud services. As growth moderated in the post pandemic period, the company began reassessing staffing levels across divisions. 

Undoing Pandemic-Era Expansion 

Between 2020 and 2022, Amazon significantly expanded its workforce to meet surging demand for e-commerce and cloud services. As growth moderated in the post-pandemic period, the company began reassessing staffing levels across divisions. The latest cuts follow several rounds of layoffs over the past two years as Amazon adjusts to slower growth and higher operating costs.

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AI-led Restructuring

The workforce reduction comes alongside Amazon’s growing focus on artificial intelligence and automation, particularly across Amazon Web Services (AWS), logistics, and advertising businesses. The company has increased investments in generative AI and automation tools to boost productivity, reduce long-term costs and speed up innovation.

Amazon executives have previously said that AI-driven efficiencies are expected to reshape roles across teams, thus lowering the need for some functions while increasing demand for specialised technical talent.

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