Roughly 14,000 corporate jobs are to go at tech giant Amazon, the company announced.
The impact on the 75,000-strong UK workforce is not immediately clear from the announcement, which said impacted people and teams would hear from leadership on Tuesday.
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A loss of 30,000 jobs had been anticipated based on reporting from Reuters and The Wall Street Journal.
Amazon workers’ union in the UK, GMB, had said, based on those numbers, that «it is almost inevitable that many UK workers will lose their jobs».
«The fact that companies can accrue such astronomical profits to the point where its [founder, Jeff Bezos] can holiday in space and hire out entire cities for his vulgar wedding prior to casting aside loyal workers without a thought just underlines everything that’s wrong with a system that many feel is beyond repair,» the union said.
Why?
The growth of artificial intelligence (AI) has been blamed for the cuts.
In a message sent to staff, Amazon’s senior vice president of people experience and technology, Beth Galetti, alluded to the criticism that the company is cutting jobs while profiting £19.2bn in results published in July.
«Some may ask why we’re reducing roles when the company is performing well,» she wrote.
«What we need to remember is that the world is changing quickly. This generation of AI is the most transformative technology we’ve seen since the Internet, and it’s enabling companies to innovate much faster than ever before.»
Amazon is also continuing to unravel some of the hiring it made during the COVID-19 pandemic and has warned about reducing headcount and bureaucracy.
In May 2021, for example, the business said it was hiring more than 10,000 UK jobs.
The largest ever cut of 18,000 Amazon roles was announced in January 2023 when the consumer retail part of the business, including Amazon Fresh and Amazon Go, were scaled back.
It plans to replace more than half a million jobs with robots, automating 75% of its operations, according to the New York Times.
What next?
Those who lose their job will be prioritised for openings within Amazon to help «as many people as possible» find new roles, she said.
Hiring will continue, despite the latest cull, in «key strategic areas» while the online retail behemoth finds additional places we can «remove layers, increase ownership, and realise efficiency gains».
Amazon said it is «shifting resources to ensure we’re investing in our biggest bets and what matters most to our customers’ current and future needs».
In the UK, GMB said, «We will be supporting our members across Amazon as they face this uncertain future.»
It is to announce financial results for the third quarter of this year on Thursday evening, UK time.
Amazon UK has been contacted for comment.
. Roughly 14,000 corporate jobs are set to be eliminated at tech giant Amazon, as announced by the company. The impact on the 75,000-strong UK workforce remains unclear from the announcement, with affected individuals and teams expected to receive communication from leadership on Tuesday.
A loss of 30,000 jobs had been predicted based on reports from Reuters and The Wall Street Journal. The Amazon workers’ union in the UK, GMB, expressed concerns based on these figures, stating that it is highly likely that many UK workers will face job cuts.
The union criticized the company for amassing substantial profits, allowing its founder, Jeff Bezos, to partake in extravagant activities like space travel and lavish weddings, while disregarding loyal employees. This situation highlights the flaws in a system that many believe is irreparably broken.
The growth of artificial intelligence (AI) has been cited as a reason for the job reductions. Amazon’s senior vice president of people experience and technology, Beth Galetti, mentioned in a message to staff that despite the company’s strong performance, changes are necessary due to the rapid evolution driven by AI technology, which enables companies to innovate at an unprecedented pace.
Amazon is also revisiting some of the hiring decisions made during the COVID-19 pandemic and has signaled intentions to streamline operations by reducing headcount and bureaucracy. In January 2023, the company announced its largest job cut ever, affecting 18,000 roles within the consumer retail division, including Amazon Fresh and Amazon Go. Amazon plans to automate 75% of its operations by replacing more than half a million jobs with robots, as reported by the New York Times.
Employees who are impacted by the job cuts will be given priority for internal job openings within Amazon to facilitate their transition to new roles. Despite the recent downsizing, Amazon will continue to hire in key strategic areas and seek ways to enhance efficiency by eliminating layers and increasing ownership.
The company aims to reallocate resources to focus on its core priorities and address the evolving needs of its customers. GMB in the UK pledged to support Amazon employees facing an uncertain future amidst the restructuring. Amazon is scheduled to release its financial results for the third quarter of the year on Thursday evening, UK time.
Amazon UK has been reached out to for comment on the matter.
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