Amazon job cuts: Why 30,000 corporate employees are being laid off
E-commerce giant Amazon will soon conduct large-scale layoffs, putting the jobs of 30,000 employees at risk. According to experts, the spread of AI is a major reason for the layoffs. So, what are the reasons and when this process might begin? Learn the details.
New Delhi: E-commerce giant Amazon is preparing for a big layoff once again. According to a Reuters report, the company may start the process of firing about 30,000 corporate employees from Tuesday, October 28. This move is one of the biggest layoffs in Amazon's history. Earlier in the year 2022, a large number of people lost their jobs. Since then, that is, after about 3 years, this will be the biggest layoff ever.
Amazon job cut: Reasons for layoffs
Amazon has reportedly taken this decision as part of its strategy to cut down its expenses and increase operational efficiency. During the Corona epidemic, when there was a boom in online shopping, Amazon had recruited employees on a large scale. But now due to slowing down consumer demand and tightening economic conditions, the company is again working to improve its business structure, which will lead to large-scale layoffs.
According to the Reuters report, Amazon may lay off about 30,000 employees. Of its total 1.55 million employees, about 3.5 million are corporate staff, out of which about 10% of the employees are losing their jobs. This layoff is expected to hit the company's HR division (PXT i.e. People Experience Technology) the most. According to the Fortune report, HR can be reduced by about 15%, while other divisions will not be left untouched. However, the company has not made any official statement on this matter yet.
Amaozn layoffs: AI - the biggest obstacle
Around 27,000 employees lost their jobs in 2022-23. Now employees are facing layoffs again. Experts say that another big reason behind this move is the increasing influence of AI technology. Now companies are gradually increasing the use of artificial intelligence (AI) in simple to complex activities, which is reducing the dependence on human resources. Due to which the risk of people's jobs has increased.