:max_bytes(150000):strip_icc()/GettyImages-2255918672-50df7ec26b9b40119bbbd41273cc56fe.jpg "Amazon Is Laying Off 16,000 Workers, in Latest Round of Cuts")
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Key Takeaways
- Amazon said Wednesday it is laying off another 16,000 corporate employees, after cutting 14,000 jobs in October.
- Many of Amazon’s big tech peers have also laid off workers recently.
Amazon’s corporate ranks are about to get smaller.
The tech giant said Wednesday that it is laying off another 16,000 corporate employees, after cutting 14,000 jobs in October.
Amazon Senior Vice President of People Experience and Technology Beth Galetti said in a statement that the move is part of the company’s ongoing efforts to “strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy.”
The timing of the cuts aren’t meant to reflect a “new rhythm” of reductions every few months, according to Galetti, but she didn’t rule out the possibility of future layoffs. “Just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate,” Galetti wrote.
Why This News is Important
Many of Amazon’s big tech peers including Microsoft (MSFT) and Google parent Alphabet (GOOGL) have also laid off workers in recent months. Some experts have said the industry could still be correcting for overhiring during the pandemic, while others have pointed to the industry’s growing spending on AI and the need to cut costs elsewhere to sustain profits.
Executives could face questions about the cuts when the company reports fourth-quarter earnings after the closing bell next Thursday. Analysts at Bank of America told clients this week that they’re expecting Amazon (AMZN) to post strong results, though they warned its capital expenditures forecast could top consensus projections as the company invests heavily in its AI buildout.
Amazon shares were little changed in recent trading, and are up just 2% over the last 12 months.
