Amazon Plans Major Layoffs Amid AI Expansion and 100B USD Investments

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Amazon Plans Major Layoffs Amid AI Expansion and 100B USD Investments

Washington, D.C., Seattle, USA: Amazon, the global e-commerce powerhouse, is reportedly planning another significant round of employee layoffs. The company has announced that it intends to reduce around 15% of its human resources staff, according to a report published by Fortune magazine.

The report highlights that this upcoming layoff appears to be the largest in Amazon's HR division to date. Other departments will also feel the impact, although exact details about the duration and total number of affected employees have not been clarified. These measures are part of the company's ongoing restructuring efforts. When approached for comment, Amazon spokesperson Kelly Nantel chose not to provide additional information.

Amazon is simultaneously investing heavily in its cloud computing operations and artificial intelligence initiatives. The company has committed more than $100 billion in capital spending this year, with a significant portion allocated toward building advanced, next-generation data centres.

Under CEO Andy Jassy, workforce reductions have been an ongoing theme. In 2022 and 2023 alone, Amazon cut 27,000 jobs as part of its operational realignment. Jassy has emphasised that this is the era of artificial intelligence, encouraging employees to embrace AI tools to enhance customer service and operational efficiency. The current expansion of AI within Amazon's systems has coincided with the announcement of job cuts.

Despite these reductions, Amazon is preparing for seasonal hiring. The company has revealed plans to recruit 250,000 temporary workers across its U.S. warehousing and logistics network to handle increased demand during the festive season.

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