Amazon has announced it will be cutting around 14,000 jobs as it increases its push for efficiency and greater use of artificial intelligence.
In a letter to staff, senior vice president of people and technology Beth Galetti explained the company’s decision, calling AI “the most transformative technology since the internet” and saying the emphasis would remain on people taking more ownership of work, with fewer layers in the hierarchy.
It is unclear what the impact on Amazon’s 75,000 UK workforce will be, but reports in Reuters and The Wall Street Journal suggested global divisions, including human resources, operations, devices and services, and Amazon Web Services (AWS), are expected to be affected.
“Some may ask why we’re reducing roles when the company is performing well. Across our businesses, we’re delivering great customer experiences every day, innovating at a rapid rate, and producing strong business results. What we need to remember is that the world is changing quickly,” Ms Galetti wrote.
“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 in existing market segments and altogether new ones. We’re convinced that we need to be organised more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.”
CEO Andy Jassy had previously cautioned staff that some roles within the company could be replaced by AI.
The expected cuts will impact almost a tenth of the company’s roughly 350,000 corporate workforce. Amazon employs more than 1.5 million staff in total, with the majority in warehouse roles around the world.
It has been trimming roles across the business in recent years, with cuts affecting divisions such as devices, communications and podcasting.
In September, Amazon revealed plans to shut all its Amazon Fresh grocery stores in the UK last month, putting up to 250 jobs at risk.
Additional reporting by PA