Amazon is on the verge of an important decision that marks a new era in employment policies in the technology sector. The company is considering eliminating up to 30,000 corporate positions. According to information shared by Reuters, the decision can be implemented as of Tuesday. These layoffs are expected to cover various departments of the company, such as human resources, devices and services, and operations.
This situation has the potential to be the biggest wave of layoffs Amazon has experienced in recent years. In the process that started at the end of 2022 and continued throughout 2023, 27 thousand people parted ways with the company. Now, it is possible to exceed these figures. However, this time, not only cost pressures but also the rise of artificial intelligence stand out as one of the main reasons behind the decision. The transformation experienced in different departments of Amazon also causes radical changes in the employment structure. Besides all this, it appears that the restructuring is part of a broader digitalization process.
Amazon hands over jobs to artificial intelligence
In the internal information note sent to employees by Amazon CEO Andy Jassy, it was emphasized that with the widespread use of artificial intelligence tools, many corporate positions are no longer necessary. This statement shows that the company is not only reducing costs but also shifting to a more automation-oriented structure. Although this transformation increases efficiency, it poses some risks in terms of company culture and employee loyalty. Another element that draws attention at this point is that a serious contraction is planned, especially in non-management positions. In contrast, there are strong indications that growth will continue in technical positions and artificial intelligence-related fields. This decision of Amazon reflects not only the internal dynamics but also the general trend in the industry.
The restructuring of the human resources department has also been put on the agenda. The reduction in the number of personnel in this department is due to the fact that recruitment processes are increasingly carried out with automation systems. Especially artificial intelligence-supported evaluation tools make it possible to perform many tasks with fewer human resources. Accordingly, there is a visible transformation in the company’s strategy towards human resources. Still, this process has the potential to create uncertainty and distrust in employees. Such emotions can have negative effects on performance and job satisfaction.
The devices and services department has been under observation for a long time due to poor performance. Some investments made by the company in this field could not provide the expected return. In addition, with the cancellation of some projects, the workload of the staff in these units decreased. Naturally, a reduction in the staff became inevitable. Amazon considers the restructuring in this department not only as a staff reduction but also as a more strategic use of resources. Although such decisions may provide short-term gains, they need to be carefully planned for long-term innovation and product development.
A similar situation exists in operational units. With the spread of artificial intelligence-based systems, especially in areas such as logistics and supply chain, some tasks have become independent of manpower. This caused the company to review its employee needs in these departments. In addition, with the increase in automation, the reduction of errors and the acceleration of processes pave the way for the management level to make decisions in this direction. However, if sufficient time and resources are not provided for employees to adapt to these changes, organizational problems are likely to arise. Therefore, not only technological infrastructure but also human-oriented transition processes are gaining importance.