Amazon Cuts 16,000 Jobs as Company Shifts Focus Toward AI
- Amazon is cutting 16,000 corporate jobs to streamline operations and reduce management layers.
- The company is investing heavily in AI and automation, which may replace hundreds of thousands of roles long-term.
- Amazon is rethinking its retail footprint, closing Amazon Go stores and focusing on online grocery delivery and Whole Foods expansion.
Amazon is once again trimming its corporate workforce as it pushes deeper into the race to dominate artificial intelligence. On Wednesday, the company confirmed that 16,000 corporate employees will be laid off, marking another major step in its broader cost-cutting strategy.
Text “RICKEY” to 71007 to join the Rickey Smiley Morning Show mobile club for exclusive news. (Terms and conditions).
The move follows a similar round of job cuts in October, when Amazon eliminated 14,000 corporate roles. At the time, reports suggested more layoffs were likely once the busy holiday shopping season ended. That prediction has now become reality.
While Amazon’s business remains strong, company leaders say the layoffs are meant to streamline operations and reduce layers of management. In a public message to employees, senior vice president Beth Galetti explained that teams across the company are being asked to reassess how they work and where resources are best used. She added that these changes are happening in response to how quickly the business and technology landscape is evolving.
LIKE US ON FACEBOOK. FOLLOW US ON TWITTER AND INSTAGRAM. SUBSCRIBE TO OUR YOUTUBE.
The timing of the announcement comes just days before Amazon is set to release its fourth-quarter earnings report. Analysts expect the company to report more than $211 billion in sales from the holiday season and profits exceeding $21 billion. In the previous quarter alone, Amazon posted $180 billion in revenue, showing that consumer demand remains strong even as the company cuts internal costs.
This isn’t the first time Amazon has taken aggressive action to reduce its workforce. Between late 2022 and early 2023, the company cut nearly 30,000 positions as pandemic-era growth slowed. More recently, the October layoffs hit several departments, including recruiters, managers, analysts, and software engineers. Thousands of jobs were eliminated in states like Washington and California.
Amazon CEO Andy Jassy has previously told employees that artificial intelligence will eventually allow the company to operate with fewer corporate workers. While leadership has emphasized that the current layoffs are more about reducing bureaucracy than replacing people with technology, A.I. remains a central part of Amazon’s long-term strategy.
CLICK HERE TO DOWNLOAD OUR APP AND TAKE US WITH YOU ANYWHERE!
The company is spending heavily to expand its data centers and cloud infrastructure, with plans to invest as much as $125 billion on capital projects related to technology and A.I. development. At the same time, Amazon is also rethinking its retail footprint. The company recently announced it will shut down its remaining Amazon Go convenience stores and some Amazon Fresh grocery locations. Several of those stores are expected to be converted into Whole Foods Market sites, while Amazon focuses on faster online grocery delivery and expanding Whole Foods over the next few years.
Related Article: Amazon Reaches $2.5B Settlement In Prime FTC Lawsuit
Related Article: White House Slams Amazon for Displaying Tariff Costs
Although Amazon employs more than 1.5 million workers worldwide, most of whom work in warehouses and delivery operations, the company has also been exploring automation in those areas. Reports indicate long-term plans to introduce more robotics that could eventually replace hundreds of thousands of roles.
As Amazon reshapes its workforce and business model, the company says it is not planning to create a regular cycle of layoffs. Still, with ongoing investments in technology and automation, more changes may be ahead as Amazon continues to redefine how it operates in the A.I. era.
HEAD BACK TO THE RICKEYSMILEYMORNINGSHOW.COM HOMEPAGE
