Amazon officially confirmed on Wednesday that it is cutting another 16,000 corporate jobs. This move completes a massive downsizing plan that has seen the company let go of 30,000 employees since October. While Amazon employs more than 1.5 million people, most of them work in fulfillment centers and warehouses. These specific cuts target the office side of the business, wiping out nearly 10% of the total corporate workforce.
Beth Galetti, Amazon’s top human resources executive, explained the decision in a note to staff. She said the company needs to “remove bureaucracy” and “reduce layers” to make the business stronger. She also left the door open for even more job losses, noting that some teams will continue to make “adjustments” where they see fit.
Artificial intelligence is a major factor behind this shift. Last summer, CEO Andy Jassy warned that AI would eventually automate many office duties. Today’s AI assistants can handle everything from basic data entry to complex computer coding with incredible speed and accuracy. This technology allows Amazon to operate with a much leaner staff than it needed just a few years ago.
The company also admitted that it overhired during the COVID-19 pandemic. When everyone was stuck at home and ordering everything online, Amazon added thousands of workers to keep up. Now that the world has opened back up and shopping habits have changed, the company is shrinking its staff to save money.
This retreat isn’t just about office workers. On Tuesday, Amazon announced it is closing all its remaining physical “Fresh” grocery stores and “Go” markets. Instead of human-run stores, the company is pouring money into warehouse robots that pack boxes and sort packages faster and cheaper than people.
The layoff process has been messy. This week, thousands of workers at Amazon Web Services were unsettled after the company accidentally sent an email referring to the cuts as “Project Dawn.” Despite the internal stress, investors seem to support the move. Amazon’s stock rose slightly on the news as Wall Street waits for the company’s full financial report next week.
