In a significant corporate restructuring move, Amazon has confirmed it will eliminate 16,000 positions worldwide, representing the most substantial round of layoffs the company has undertaken in recent years. This announcement comes swiftly on the heels of the retail and technology giant's decision to shutter all of its Amazon Fresh and Amazon Go physical grocery stores.
Organisational Changes and Strategic Focus
Beth Galetti, Amazon's senior vice president of people and technology, communicated the news to staff via an internal letter. She explained that the company has been engaged in efforts to streamline its organisational structure by reducing management layers, enhancing ownership among teams, and cutting through bureaucratic processes.
"While many teams finalized their organizational changes in October, other teams did not complete that work until now," Galetti stated, providing context for the timing of these latest job reductions.
Commitment to Hiring in Key Areas
Despite the widespread layoffs, Amazon emphasised that it remains committed to ongoing recruitment and investment in what it describes as "strategic areas" of the business. Galetti sought to reassure employees that this does not signal the beginning of a pattern of regular, large-scale workforce reductions.
"Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan," she wrote in the staff communication. "Every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate."
Store Closure Rationale
The job cuts follow closely Amazon's Tuesday announcement regarding the closure of 72 Amazon grocery stores. The company cited its inability to establish a "truly distinctive customer experience with the right economic model needed for large-scale expansion" for these physical retail locations as the primary reason for this strategic withdrawal from the grocery store sector.
This latest round of layoffs occurs several months after Amazon previously cut approximately 14,000 jobs, indicating a continued period of significant operational adjustment and cost management for the multinational corporation.
