Amazon Reportedly Plans More Job Cuts In The Thousands Next Week

• Jobs in its Amazon Web Services, retail, Prime Video and human resources, known as People Experience and Technology, units are slated to be impacted. 
• Amazon in October had laid off 14,000 of its white-collar workers.
• The details of Amazon's job cut plans could change, as per the report. 

Amazon is reportedly planning a second round of job cuts next week as part of its broader goal of trimming 30,000 corporate jobs. 

The company is expected to cut roughly 14,000 jobs- roughly the same as it did last year- starting as soon as Tuesday, a report from Reuters said, citing people familiar with the matter.

Jobs in its Amazon Web Services, retail, Prime Video and human resources, known as People Experience and Technology, units are slated to be impacted, the report said. The report said that the details of Amazon's job cut plans could change. 

Previous Layoffs

Amazon in October had laid off 14,000 of its white-collar workers, citing the rise of artificial intelligence software. The online retailer reportedly said in an internal letter that “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 CEO Andy Jassy told analysts during the company’s third-quarter earnings call that the reduction was “not really financially driven and it’s not even really AI-driven.” 

Affected workers in October were told they would remain on the payroll for 90 days, during which time they could apply for jobs internally or seek other employment, the report added. That period will expire on Monday, next week.

Overall Headcount Impact

The Reuters report on Thursday noted that 30,000 jobs will represent a small portion of Amazon’s 1.58 million employees, but nearly 10% of the firm’s corporate workforce. The majority of Amazon’s workers are in fulfillment centers and warehouses.

However, it will be the third-largest layoff in the company's history. Amazon laid off about 27,000 workers from their roles in 2022.

How Did Stocktwits Users React?

Retail sentiment around AMZN trended in ‘neutral’ territory amid ‘normal’ message volume. 

Shares in the company have risen 1% over the past 12 months. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.
 

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