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

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 carrying out 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-based positions 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. Last October, Amazon also announced a reduction of 14,000 employees, bringing the total number of layoffs over the past three months to approximately 30,000.

Beth Galetti, Senior Vice President at Amazon, cited changes in AI technology as the background 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."

Through a blog post on the same day, she reiterated the additional layoff plan, 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 of Amazon, also suggested that workforce reductions could continue over the next several years as a result of AI-driven technological innovation. However, in her message to employees, Senior Vice President Galetti emphasized that Amazon will continue to hire and invest in strategic areas and functions that are critical to the company's future.

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

Foreign media outlets are interpreting this round of layoffs as the result of Amazon's AI-focused strategy and its ongoing efforts to reduce costs.

FT pointed out that Amazon is accelerating efforts to strengthen its AI competitiveness, with Amazon Web Services (AWS), its rapidly growing cloud arm, at the core. In this process, competition for leadership with rivals such as Google and Microsoft is intensifying. Last year, Amazon announced plans to invest about $118 billion (approximately 168 trillion won), with a significant portion reportedly allocated to expanding AI infrastructure.

Reuters reported that the layoff of 30,000 employees represents about 10% of Amazon's office workforce, making it the largest reduction in the company's 30-year history. Between late 2022 and early 2023, Amazon also cut approximately 27,000 jobs.

While Amazon does not disclose the exact number of its office employees, the figure is estimated to be around 350,000, most of whom are 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 frontline roles.

Meanwhile, across the tech industry, workforce adjustments are continuing as companies concentrate resources on core areas such as AI. Foreign media report that, following a surge in hiring during the COVID-19 pandemic, major technology firms are undergoing restructuring as part of a reevaluation of their growth strategies. In fact, Meta Platforms is reducing staff in its metaverse-related divisions while increasing investment in AI research teams, and companies like Pinterest and Expedia have also recently implemented layoffs to focus their capabilities on key businesses such as AI.