The rumors of job cuts at Amazon continue to escalate at an alarming rate, marking one of the company’s biggest labor overhauls in recent years. Amazon’s corporate layoffs are expected to target 30,000 workers, with sources informing Reuters that the changes could eliminate as much as 10% of the company’s global office-based workforce. While Amazon has not confirmed these layoff rumors, they add to the concerns that have been swirling around this month, warning workers of upcoming changes to the company’s headcount to clear up room for automation and AI-based investments.
Amazon’s corporate layoffs are expected to eliminate 10% of its office-based workforce, marking one of the biggest cuts at the organization since 2022. (Image: Pexels)
Amazon’s Corporate Layoffs Could See as Many as 30,000 Workers Forced Out the Door
Amazon, one of the largest e-commerce businesses and global employers, is set to eliminate 30,000 corporate jobs this week. The changes are expected to help cut expenses and narrow down an overinflated workforce. Amazon’s massive layoffs report may not account for a significant portion of its total headcount of 1.55 million workers, but it does comprise a substantial number of the 350,000 corporate employees.
While Amazon’s corporate layoffs don’t come as a surprise, the magnitude of the cuts is certainly alarming. The organization has already invested in a few rounds of layoffs through the year, targeting different segments of the business, from its AWS operations to its often-forgotten books division. The company’s seasonal hiring plans appear to be on track with plans to recruit over 250,000 workers for warehouse and delivery roles, however, this isn’t quite as reassuring for corporate workers.
Amazon Cuts 10% of Its Corporate Staff With More Cuts On the Horizon
Earlier reports from this month indicated that an Amazon job cuts announcement was imminent for 15% of HR employees or workers in the People Experience and Technology division (PTX). Amazon’s cuts to the corporate workforce aren’t the only rumored changes that are on the way.
Follow-up rumors indicated that Amazon was doubling down on its pursuit of increased automation across its operations, but this could mean plans to replace 600,000 workers with robotic systems by 2033. While the report suggested that no immediate cuts had been planned to meet this goal, the likelihood of future cuts is inevitable.
As Amazon Cuts Its Corporate Workforce, It Prepares Managers to Handle the Change
According to insiders, managers of the teams at the center of the cuts were provided with training on how to handle the announcement and inform workers of the incoming changes to their ranks. Emails with the announcement are expected to go out on Tuesday, which will mean a period of emotional turmoil for workers and additional work for managers.
The decision to provide training and resources for the managers is a significant move by Amazon, as conducting layoffs is never easy, and it requires most to be prepared for the questions and accusations they are likely to be flooded with.
This year, Amazon has focused its attention on a cultural overhaul to rewire how the business operates. Apart from the controversial decision to bring workers into the office full-time, the company has also reportedly made changes to how it evaluates employee performance.
Amazon has also set its sights on a mission to flatten the organization, eliminating the overlapping managerial forces within the organization to improve the workflow for the business as a whole. With such sweeping changes causing rifts across the business, training and additional support tools are imperative to manage change.
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