According to CNBC, Bloomberg and others, the Amazon project announced a massive lay-off from Tuesday. Informed sources revealed that this reduction would create a historical record of the size of the company ‘ s staff reductions, affecting almost all business sectors.
It is understood that Amazon will formally notify affected staff by e-mail on Tuesday morning. Reuters reports that the company plans to cut down about 30,000 employees in its enterprises, which will be the largest reduction in the scientific and technological industry since 2020. As the second largest private employer in the United States, the total number of employees worldwide in the Amazon as at the end of the second quarter was over 1.54 million, mainly warehouse logistics staff and about 350,000 employees in businesses. According to the technology industry data tracking website Layoffs.fyi, as of Monday, more than 200 technology companies had lost about 98,000 employees this year. A comparison of the number of staff reductions in the technological sector over the past years shows that:Microsoft reduced its staff by some 15,000 this year by about 600 Googles from the AI department last week.
Intel’s cumulatively downsized 22,000 this year.
In 2023, the worst year of lay-offs in the science and technology sector, nearly 1,200 enterprises accumulated more than 260,000 lay-offs, mainly due to high inflation and rising interest rates. Over the past year, a number of industries, such as science and technology, finance, automobiles and retail, have indicated that the rise of generating AI is changing the scale of their work. The Amazon has implemented multiple rolling staff reductions since 2022, with a cumulative over 27,000 people affected. In recent years, while the downsizing has been modest, the cloud operations, electricians, communications and equipment sectors have continued to lose their staff in the recent past. This reduction is an extension of the cost-cutting strategy initiated by CEO Andy Jassi since the outbreak, to achieve organizational flattening reform by reducing the management level. In June, Jassi made it clear to the staff that, with the application of the generation of AI technology, “the capacity required for some of the existing posts would be reduced while the demand for other types of posts would increase”. In his internal memorandum, he wrote: “Although it is difficult to predict the final impact with precision, it is expected to lead to a decline in the total number of employees in the enterprise in the coming years.”
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