Amazon’s generosity doesn’t just live in ballrooms. After financing the new luxury wing of the White House, the technology giant is now preparing to cut where it hurts most: jobs. The company plans to eliminate up to 30,000 office jobs in the biggest cut ever in this type of role, according to the news agency Reuters.
Job cuts are nothing new for the company led by Andy Jassy. Amazon has been reducing its workforce for around two years in an effort to reduce expenses and correct excessive hiring during the pandemic, a period marked by strong demand in online commerce.
According to the North American channel CNBCAmazon is expected to begin informing its employees about the layoffs, via email, this Tuesday morning.
The cuts will cover several divisions, including human resources, devices and services and operations, among others, according to sources cited by the British news agency.
The restructuring is part of Andy Jassy’s strategy to simplify the company’s hierarchy and eliminate what he himself described as “excessive bureaucracy”. The manager has encouraged workers to identify inefficiencies, having created an anonymous line of suggestions that has already resulted in hundreds of internal changes.
Amazon’s growing commitment to artificial intelligence is also accelerating this transformation. Analysts say that productivity gains generated by task automation are allowing the company to operate with fewer people.
According to CNBC, Amazon is the second-largest private employer in the United States, with 1.55 million workers worldwide – the overwhelming majority dedicated to warehouse and logistics roles. The number of office jobs is much more modest: around 350 thousand.
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