Amazon CEO said – AI is not the reason for layoffs: Decision taken to improve the culture of the company; Amazon has laid off 14,000 employees

Amazon CEO Andy Jassy. (file photo)

Amazon CEO Andy Jassy has said on the new layoffs taking place in the company that this decision has been taken not because of cost-cutting or artificial intelligence, but to improve the culture of the company. Recently the company has fired about 14 thousand corporate employees.

According to media reports, the total layoff can reach 30 thousand, which is considered to be the biggest cut in the history of Amazon.

The number of employees had increased three times in 5 years

Jesse said that the company’s culture is being reset. Corporate headcount was expected to triple from 2017 to 2022. This slowed down the decisions, but now it is necessary to control it. He said, when the size increases, sometimes without realizing it, the feeling of ownership among the employees decreases.

By reducing middle management through layoffs, decisions will be taken faster and the company will become more entrepreneurial. He said that in this time of technology, it is important for the company to remain lean, flat and fast. We have to bring back the same ‘two-way door’ culture, in which people can take quick decisions and take responsibility for their work. Amazon should work like the world’s biggest startup.

Biggest layoff after 2023

This is the biggest cut in Amazon after the layoff of 27,000 employees in 2022-2023 after the Corona epidemic. These layoffs constitute about 4% of the company’s 3.5 lakh white-collar (corporate) employees. Even though the company has earned a profit of $ 18 billion (about ₹ 1.6 lakh crore) in the quarter.

CEO had created an anonymous complaint line

CEO Andy Jassy had said that the increasing use of AI tools is likely to reduce jobs further. Especially in those tasks where repetition and routine work is involved.

Earlier this year, he created an anonymous complaint line to bring notice to people who were not working, and it received about 1,500 responses.

Amazon’s plan is to build such warehouses where fewer people work.

Estimated savings of Rs 1 lakh crore by 2027

Internal documents reveal that these robots will save up to 30 cents (about Rs 2.5) per item picked, packed and delivered. A total savings of $ 12.6 billion (about Rs 1 lakh crore) can be achieved between 2025 and 2027.

Plan to automate 75% of operations

Amazon’s plan is to build such warehouses where fewer people work. These warehouses will be designed for superfast delivery. The company’s robotics team’s final plan is to automate 75% of operations.

• Amazon launched its most advanced warehouse in Shreveport last year. Human interference has reduced a lot in this. With 1,000 robots running, the facility reduced its workforce by 25% last year compared to a non-automated setup.
• Amazon plans to copy the Shreveport design in about 40 facilities by the end of 2027. It is starting with a recently opened large warehouse in Virginia. Amazon has also started renovating old facilities.

People are searching for Amazon layoff

Amazon is laying off about 30,000 of its corporate employees to streamline operations and balance out overhiring during peak demand during the pandemic. After this, people are continuously searching about the company. If we look at the graph of the last few days, it becomes clear that suddenly the graph of ‘Amazon layoffs employees’ has increased rapidly. See Google Trends below…

Source: Google Trends

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