Amazon, the vast Seattle-based e-commerce giant with a global workforce exceeding 1.5 million, announced on Tuesday, October 28, its plans to cut approximately 14,000 corporate positions. This significant reduction is part of an ongoing strategy to make the company more agile, efficient, and deeply integrated with AI technologies.
Earlier, some media outlets had speculated that the layoffs could be as high as 30,000, potentially marking the largest corporate job cuts in Amazon’s history. Such a move would have far-reaching effects, particularly in countries like India, where Amazon directly employs between 120,000 and 130,000 people.
Hours after these initial reports surfaced, Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, confirmed the organizational changes in a blog post to employees. She stated that these shifts would indeed impact a number of team members’ roles.
Galetti clarified that while some areas might see reductions and others new hires, the net effect would be an approximate 14,000 decrease in their corporate workforce. Given India’s substantial portion of Amazon’s global employee base, the country is expected to face a notable impact from these cuts.
According to Avinash Vashistha, Managing Director and Founder of Tholons, an AI and technology advisory firm, Amazon’s extensive layoff plan represents a significant adjustment following its aggressive hiring spree during the pandemic, when it added over 500,000 employees worldwide.
Mr. Vashistha, who previously served as chairman and MD of Accenture India, highlighted that this ‘people-correction’ is fueled by a strategic shift towards AI and a concerted effort to minimize excessive bureaucracy. He projected a substantial impact on India, estimating that several thousand roles would be eliminated within divisions like AWS and HR, given the country’s corporate workforce of approximately 35,000.
Aditya Narayan Mishra, MD and CEO of CIEL HR, a prominent hiring solutions firm, observed that these large-scale layoffs, particularly those tied to AI transitions, underscore the inherent challenges and complexities involved in the move towards automation.
Internal sources suggest the layoff process is imminent, expected to begin within the next day or two. Managers have reportedly undergone specialized training sessions to effectively communicate these difficult decisions and manage interactions with the affected employees.
Elaborating on the broader context, Ms. Galetti explained that the current reductions are a continuation of Amazon’s ongoing efforts to enhance its strength by streamlining processes, eliminating unnecessary organizational layers, and reallocating resources towards its most promising future investments.
Anticipating questions about job cuts during a period of apparent company success, Ms. Galetti emphasized the rapidly changing global landscape. She stated that the current generation of AI represents the most transformative technology since the internet, empowering companies to innovate at an unprecedented pace across both existing and entirely new market sectors.
She concluded by reassuring that Amazon is committed to supporting all impacted employees. This includes providing most individuals with a 90-day window to seek alternative internal roles. For those who cannot find a new position within the company or choose not to, Amazon will provide comprehensive transition assistance, such as severance packages, outplacement services, health insurance benefits, and additional support.