Job Cuts at Amazon
The company has announced that around 14,000 corporate jobs will be cut. The impact on the 75,000 UK workforce is not immediately clear, with affected individuals and teams to be informed by leadership.
Expected Job Losses
Initial reports had suggested a loss of 30,000 jobs, leading the Amazon workers union in the UK to state that it was "almost inevitable" that many British workers would lose their jobs. The union criticized the company, saying that the fact that Amazon can make significant profits while cutting jobs highlights issues with the system.
Reason for Cuts
The growth of artificial intelligence (AI) is cited as the reason for the job cuts. Amazon’s senior vice president of people experience and technology, stated that the company must adapt to the rapidly changing world and that AI enables companies to innovate faster than ever before.
Previous Hiring and Cuts
Amazon had previously announced the hiring of over 10,000 new employees in the UK in May 2021. However, in January 2023, the company announced its largest cut of 18,000 roles as it scaled back its consumer retail business. According to reports, Amazon plans to replace over half a million jobs with robots and automate 75% of its operations.
Support for Affected Employees
Those who lose their jobs will be given priority for open positions at Amazon, with the company aiming to help "as many people as possible" find new roles. Hiring will continue in "key strategic areas" where the company can "remove layers, increase ownership and achieve efficiencies."
Future Plans
Amazon stated that it is "shifting resources to ensure we are investing in our biggest bets and what matters most to our customers’ current and future needs." The company’s UK union has pledged to support affected members during this uncertain time. Financial results for the third quarter of the year are set to be announced soon.
