Despite posting a massive $18 billion quarterly profit, Amazon initiates its biggest layoff since 2023, cutting 4% of its white-collar workforce to boost automation and efficiency.
Washington ( Economy India): E-commerce giant Amazon has laid off 14,000 corporate employees, marking its biggest workforce reduction since 2023. The news came via an internal email sent on October 28 by Beth Galetti, Senior Vice President of Human Resources, informing staff that their system access had been immediately revoked.
The email stated, “All access for affected employees has been closed. If you are in the office, security will assist you in leaving the building.”
Despite the layoffs, affected workers will receive 90 days of full pay and benefits, along with a severance package and job placement support.
Largest Job Cut Since 2023’s 27,000 Layoffs
This round of layoffs impacts roughly 4% of Amazon’s 350,000 white-collar workforce, making it the company’s most extensive cut since the 27,000 layoffs during 2022–2023, which followed the post-pandemic hiring boom.
Interestingly, the move comes even as Amazon reported a quarterly profit of $18 billion (₹1.6 lakh crore), suggesting the company’s focus has shifted toward efficiency and automation rather than cost-saving alone.
Automation and AI at the Core of the Strategy
CEO Andy Jassy previously warned that the rising use of AI tools could lead to further job reductions, particularly in roles involving repetitive tasks. Earlier this year, he also introduced an anonymous internal complaint line allowing employees to report underperforming colleagues — which received over 1,500 responses.
Amazon’s long-term plan involves creating highly automated warehouses where fewer humans are needed. The goal is to automate up to 75% of operations across its logistics network.
$12.6 Billion Cost Savings Expected by 2027
Internal documents reviewed by analysts show that using robots to pick, pack, and deliver items could save up to 30 cents (₹2.5) per item. Over the 2025–2027 period, Amazon expects to save $12.6 billion (around ₹1 lakh crore) through these automation initiatives.
Future of Amazon Warehouses: Robots Take Over
Amazon launched its most advanced robotic warehouse in Shreveport last year, reducing the need for human workers by 25% compared to traditional setups. The company plans to replicate this model in 40 facilities by the end of 2027, beginning with a new Virginia hub and ongoing upgrades to existing centers.
Outlook: Efficiency Over Employment
While automation promises faster deliveries and lower costs, the mass layoffs highlight the human cost of technological progress. For now, Amazon’s transition toward AI-driven operations signals a future with fewer employees but higher efficiency, as the company continues reshaping global logistics at unprecedented scale.
(Economy India)
