Amazon Announces Major Global Restructuring with 16,000 Job Cuts
In a significant move to streamline its operations, Amazon has confirmed plans to cut approximately 16,000 jobs globally. This latest round of layoffs represents the company's most substantial workforce reduction since 2023, marking a continued effort to optimise its organisational structure amid evolving market conditions.
Details of the Job Cuts and Operational Changes
The majority of the impacted positions will be located in the United States, but the restructuring will also affect some roles within Amazon's UK operations. Alongside the job cuts, the retail giant has announced strategic shifts in its physical grocery presence, including the closure of its 'Go' and 'Fresh' stores, while simultaneously planning to expand its Whole Foods Market footprint.
Beth Galetti, Amazon's senior vice-president of people experience and technology, emphasised that these measures are designed to strengthen the organisation's long-term resilience. "These cuts are intended to fortify our operational framework and are not part of a new regular pattern of broad reductions," Galetti stated, underscoring the company's focus on sustainable growth rather than cyclical downsizing.
Context and Union Response
This announcement follows previous significant workforce reductions at Amazon, including approximately 14,000 positions eliminated last year and 27,000 jobs cut in 2023. The cumulative impact of these layoffs highlights the company's aggressive approach to operational efficiency in a competitive retail landscape.
The GMB union has strongly criticised Amazon's decision, expressing deep concern over the company's treatment of its workforce. "Amazon cannot be trusted to prioritise the welfare of working people," a union spokesperson asserted. "The company appears fixated on profit maximisation at the direct expense of its employees' job security and livelihoods."
As Amazon navigates this restructuring, industry analysts will be closely monitoring how these changes affect the company's global market position, particularly in the grocery sector where the shift from 'Go' and 'Fresh' stores to Whole Foods expansion signals a refined strategic focus.
