"Amazon CEO Andy Jassy is undertaking an initiative to reduce what he has described as an excess of bureaucracy, including by reducing the number of managers. He installed an anonymous complaint line for identifying inefficiencies that has elicited some 1,500 responses and over 450 process changes, he said earlier this year. Jassy said in June that the increased use of artificial intelligence tools would likely lead to further job cuts, particularly through automating repetitive and routine tasks."
"This would mark Amazon's largest job cut since late 2022, when it started to eliminate around 27,000 positions. An Amazon spokesperson declined to comment. Amazon has been trimming smaller numbers of jobs over the past two years across multiple divisions, including devices, communications and podcasting. The cuts beginning this week may affect a variety of divisions, including human resources, known as People Experience and Technology or PXT;"
""This latest move signals that Amazon is likely realizing enough AI-driven productivity gains within corporate teams to support a substantial reduction in force," said Sky Canaves, an eMarketer analyst. "Amazon has also been under pressure in the short-term to offset the long-term investments in building out its AI infrastructure." The full scope of this round of job cuts was not immediately clear."
Amazon plans substantial corporate job cuts affecting a meaningful share of its roughly 350,000 corporate employees, marking the largest reduction since late 2022. Cuts may target multiple divisions, including People Experience and Technology (PXT), operations, devices and services, and Amazon Web Services. Managers received training to communicate forthcoming notifications. CEO Andy Jassy is pursuing bureaucracy reduction and fewer managers, and an anonymous inefficiency line produced 1,500 responses and over 450 process changes. Jassy linked expanded AI tool use to likely further reductions. Analysts note AI productivity gains and pressure to offset AI infrastructure investments. The full scope remains fluid.
Read at Irish Independent
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