"Everyone's Getting Laid Off" After Going All-In on AI... Company Plans to Cut 16,000 More Jobs

Additional Restructuring Follows October Layoffs
30,000 Jobs Cut Over Three Months
Organizational Overhaul as AI Investment Expands

Amazon, which announced a large-scale layoff plan last October, is once again implementing a massive workforce reduction just a few months later. As the company restructures its business strategy around artificial intelligence (AI), an additional 16,000 office jobs are expected to be cut.

Amazon, which announced a large-scale layoff plan last October, is carrying out another massive workforce reduction just a few months later. Getty Images

According to the Financial Times (FT), Reuters, and other sources on January 28 (local time), Amazon has announced this new round of layoffs. After announcing a reduction of 14,000 employees in October last year, the cumulative number of layoffs over the past three months will reach approximately 30,000 with this latest move.

Beth Galetti, Senior Vice President at Amazon, cited advances in AI technology as a key reason for last year's layoffs. She stated, "This generation of AI is the most innovative technology we have seen since the internet revolution," adding, "AI is enabling companies to innovate faster than ever before."

In a blog post released the same day, she reiterated the additional layoff plans, explaining, "As we shared last October, we have been working to strengthen our organization by reducing layers, increasing accountability, and eliminating bureaucracy."

Previously, Andy Jassy, Chief Executive Officer (CEO) of Amazon, also suggested that workforce reductions could continue in the coming years due to innovations in AI technology. However, in her message to employees, Senior Vice President Galetti emphasized, "We will continue to hire and invest in strategic areas and functions that are core to the company's future."

Andy Jassy, Chief Executive Officer (CEO) of Amazon. Photo by UPI

Foreign media outlets interpret this round of layoffs as the result of Amazon's AI-focused strategy coinciding with its ongoing cost-cutting initiatives.

The Financial Times pointed out that Amazon is accelerating efforts to strengthen its AI competitiveness, with Amazon Web Services (AWS) as a key pillar. In this process, competition for leadership with rivals such as Google and Microsoft is also intensifying. Last year, Amazon announced an investment plan of about $118 billion (approximately 168 trillion won), much of which is expected to be allocated to expanding AI infrastructure.

Reuters reported that the 30,000 layoffs amount to about 10% of Amazon's office workforce, marking the largest reduction in the company's 30-year history. Between the end of 2022 and early 2023, Amazon also cut about 27,000 jobs.

While Amazon does not disclose the exact number of its office employees, estimates put the figure at around 350,000, most of whom are believed to be based in the United States. According to Reuters, Amazon, founded in 1994, has a total workforce of about 1.58 million, with the majority employed in logistics centers, warehouses, and other on-site roles.

Meanwhile, across the technology industry, workforce adjustments are being made to focus resources on core areas such as AI. Foreign media report that after a hiring surge during the COVID-19 pandemic, major technology companies are restructuring as they revise their growth strategies. For example, Meta Platforms is reducing staff in its metaverse-related divisions while increasing investment in AI research teams. Similarly, companies like Pinterest and Expedia have recently implemented layoffs to concentrate their capabilities on key businesses such as AI.