Amazon laid off 16,000 more workers, bringing total layoffs to 30,000. The reason for this is management improvements and investment in AI. This decision has affected corporate employees across the world including India.
As technology is increasing, the threat to human jobs is increasing. Especially after the advent of technology like Artificial Intelligence (AI), the work of many people is done by a single machine, due to which employees have to be sent home. Now the world’s largest e-commerce company Amazon has also made similar big layoffs. The company sent 16,000 employees home yesterday. Since last October, Amazon has laid off 30,000 employees. This has also affected the employees of India, in which thousands of employees in many states including Karnataka have lost their jobs.
Vice President gave the reason
Amazon Senior Vice President Beth Galetti has confirmed this. He said that the purpose of this retrenchment is to reduce the layers of management, increase accountability and eliminate bureaucracy within the company. The company wants its employees to take faster decisions and increase their ability to innovate for customers. Therefore, it has been decided to hire only eligible people.
Biggest layoff after 2023
This is the biggest layoff till date after Amazon laid off 27,000 employees in 2022-2023 following the COVID-19 pandemic. According to media reports, these layoffs will mainly affect Amazon’s corporate and office employees. Amazon has approximately three and a half lakh corporate employees worldwide, out of which approximately 10% i.e. 30,000 employees will now lose their jobs. However, the company has clarified that this cut will not affect the 15 lakh employees working in its warehouse and delivery network.
Impact of investment in AI
When news of the layoffs first broke in October, the company refused to comment. Experts say that Amazon is now rapidly increasing its investment in the field of Artificial Intelligence (AI). The company is adjusting its workforce accordingly. Amazon has not yet made it clear how many people will be laid off from which departments.