Amazon recently announced in a message sent to Amazon employees the company’s decision to reduce its corporate workforce by around 14,000 roles, citing AI innovation as a main driver for the decision.
“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,” says Beth Galetti, Amazon’s senior vice president of people experience and technology.
Amazon says the company is offering most laid-off employees 90 days to find a new internal role and will offer severance pay and other benefits to employees unable to secure a new internal position.
“Some may ask why we’re reducing roles when the company is performing well,” Galetti says. “What we need to remember is that the world is changing quickly. This generation of AI is the most transformative technology we’ve seen since the Internet, and it’s enabling companies to innovate much faster than ever before, in existing market segments and altogether new ones. We’re convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.”
