Amazon to cut 16,000 jobs

Jan. 28 (UPI) — Amazon announced Wednesday that it will cut 16,000 jobs in the second round of cuts since October.

The layoffs are part of a company reorganization in an effort “to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy,” the company said in a blog post written by Beth Galetti, senior vice president of People Experience and Technology.

Galetti said that most U.S.-based employees will have 90 days to find a new job within Amazon. If they can’t find one or don’t want to, “we’ll provide transition support including severance pay, outplacement services, health insurance benefits (as applicable), and more.”

In October, Amazon said it would reduce its corporate workforce by 14,000 workers.

The company isn’t trying to follow a “new rhythm” of layoffs every few months, Galetti said. “But just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers and make adjustments as appropriate. That’s never been more important than it is today in a world that’s changing faster than ever,” she said.

With 30,000 job cuts since October, Amazon is reducing its workforce by nearly 10% of its 350,000 people.

CEO Andy Jassy has been working to downsize the workforce since the COVID-19 pandemic, which saw a surge in e-commerce demand. Jassy has also said he wants the culture at the company to be more like “the world’s largest startup,” CNBC reported.

Cutting costs at Amazon will help the company invest more in artificial intelligence and data centers, the company hopes.

In June, Jassy said that AI would likely cause a reduction in staff.

“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” CNBC reported Jassy said.

Earlier this week, Amazon closed its Fresh and Go groceries, an experiment that never took off.

On Tuesday, UPS announced it would cut 30,000 jobs as it reduces Amazon deliveries.