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E-commerce company Amazon has fired 14,000 of its corporate employees. Beth Galetti, the company’s Senior Vice President of Human Resources, sent termination letters to these employees via email on Tuesday, October 28.
Galetti wrote in an email that all employee access was immediately shut down. Those who are currently in the Amazon office, security will help them out of the building if needed. Affected employees will receive full salary and benefits for 90 days, severance package and job placement assistance.
Focus on AI in Amazon is why 30,000 jobs are in danger
Amazon is preparing to fire its total 30 thousand corporate employees, this layoff is a part of it. There are a total of 3.5 lakh corporate employees in the company, so this number is around 10%. At the same time, a total of 15.50 lakh employees work in Amazon.
- To focus more on Artificial Intelligence (AI)
- To make the company more lean and less bureaucratic
- Resources have to be redirected to adopt transformative technology
- To increase investment in generative AI and other innovations
- To reduce layers, increase efficiency and stay ahead in the AI race
- There was over-hiring during the peak demand of the pandemic, now the costs are being balanced.
Biggest layoff after 2023
This is the biggest cut in Amazon after the Corona epidemic with the layoff of 27,000 employees in 2022-2023. 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 more jobs. Especially in those tasks where repetition and routine work is involved.
Earlier this year, he created an anonymous complaint line to note down people who are not working, which received nearly 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 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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