Amazon, the United States e-commerce giant, has announced plans to lay off approximately 30,000 employees in its corporate division. This move represents a small percentage of the company’s global workforce of 1.55 million but accounts for nearly 10% of its corporate staff. The layoffs are expected to be communicated to affected employees via email, starting on Tuesday.
The decision to downsize is part of Amazon’s efforts to reorganize and become more lean, allowing the company to capitalize on opportunities presented by artificial intelligence. During the Covid-19 pandemic, Amazon, like many technology firms, hired aggressively to meet the surge in demand for online deliveries and digital services. However, with the pandemic’s impact subsiding, the company is reassessing its staffing needs.
In June, Amazon CEO Andy Jassy hinted at the impending layoffs, stating that the company would require fewer employees in certain roles and more in others. This announcement comes on the heels of reports that Amazon plans to utilize robots and automated systems to replace up to 600,000 jobs over the next eight years.
In related news, United Parcel Service (UPS) has announced significant job cuts, with 48,000 positions eliminated and 93 buildings closed so far this year. The move is part of UPS’s turnaround efforts, which include reducing its reliance on Amazon shipments. In April, UPS announced plans to slash jobs and close facilities, citing a significant decrease in Amazon shipments. The company had previously reached a deal with Amazon to lower its volume by over 50% by the second half of 2026.
The layoffs at Amazon and UPS reflect the evolving landscape of the e-commerce and logistics industries, with companies adapting to changing demand and technological advancements. As the use of artificial intelligence and automation becomes more prevalent, businesses are reassessing their staffing needs and operational efficiency. The impact of these changes will be closely watched, as the industry continues to navigate the challenges and opportunities presented by technological innovation.