AI Is the Focus of Hiring While Removing Corporate Workers
Amazon layoffs have sent shockwaves through the tech world as the company trims thousands of corporate roles. The reporter illustrates the company’s desire to streamline operations and compete in the AI-related worldwide industry.
Amazon Layoffs : Why the Tech Giant Is Cutting Jobs
According to Beth Galetti, Amazon’s human resources lead, nearly 14,000 corporate roles (roughly 4% of the workforce) will be eliminated. She stated the goal is to “reduce bureaucracy, remove layers, and shift resources to invest in our biggest bets and what matters most to customers.”
The layoffs are prompted by pressure from shareholders to make the company more efficient. Amazon grew rapidly during the pandemic, but has struggled to grow at this time. Amazon is an established leader in cloud computing, but it has fallen behind rival companies such as Microsoft and Google in AI.
AI Investment Drives Workforce Restructuring
Earlier, CEO Andy Jassy said AI is going to affect the entire workforce at the company. “We will need fewer people doing some jobs and more doing others,” he said in June. Jassy predicted corporate reductions as AI efficiency increases across Amazon’s divisions.
Amazon’s quarterly earnings report, due Thursday, will shed light on the results of its reorganized divisions as well as any impact from ongoing changes to the company in this fiscal year. Last week, the market-leading Amazon Web Services (AWS) experienced one of the largest service outages in its history, disrupting major websites and applications such as Venmo, Reddit, Roblox, and Duolingo.
Sources indicated that cuts within human resources, AWS, and other divisions may tally around 30,000 positions. Economists see these job cuts as a sign that Amazon is re-prioritizing the components that contribute to its long-term vision of expertise in artificial intelligence.
Competitors Also Cutting Corporate Jobs Amid Amazon Layoffs
This trend appears in major cutbacks as companies respond to stagnation or financial losses across the industry. Starbucks announced cuts of about 2,000 corporate positions as part of its plan to turn around its business, in addition to cuts made in a legacy change within the corporation. Target reduced approximately 1,800 roles, resurfaced after disappointing sales, even as the rest of the country tumbles downward into recession. The cutbacks demonstrate the pivot of major corporations away from overhead that leveraged expensive human resources, to focus most heavily on seeking outsourcing or improving automation and service digitization.
As the company attempts to redirect the focus on building and utilizing technology that possesses artificial intelligence, this layoff announcement represents, at a minimum, the first time that the company is willing to take substantial layoffs in the workforce as part of its broader company strategy of prioritizing innovation over the standard costs related to the workforce.
For official updates and statements, visit Amazon’s official newsroom
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