US e-commerce giant Amazon is reportedly planning a second round of job cuts, aiming to reduce its workforce by 30,000 through the utilization of artificial intelligence (AI). The upcoming layoffs are expected to affect various white-collar positions within divisions like Amazon Web Services (AWS), human resources, Prime Video, and retail.
In a move similar to its previous reduction of 14,000 white-collar employees in October last year, Amazon is anticipated to implement job cuts of a similar scale in the upcoming round. The company has not officially commented on these reports, which cite sources indicating the impending layoffs.
Amazon had previously attributed its job cuts to the advancements in AI technology, stating that AI was facilitating faster innovation within companies. However, CEO Andy Jassy later clarified that the reductions were not primarily driven by financial concerns or AI advancements but were more related to streamlining the company’s culture and reducing bureaucracy.
Despite the significant impact of potentially laying off 30,000 employees, this action would only represent a fraction of Amazon’s vast workforce of 1.58 million employees. Affected workers are expected to have a 90-day transition period during which they can explore internal job opportunities or seek employment elsewhere.
Leading tech executives at the World Economic Forum emphasized that while AI could reshape work by automating tasks, it would not entirely replace human jobs. They highlighted the transformative potential of AI in the workplace without completely displacing human workers.
