Amazon Announces 16,000 Global Job Cuts in Second Major Restructuring Round
Amazon Cuts 16,000 Jobs in Second Major Layoff Round

Amazon Announces Second Major Round of Global Job Cuts Affecting UK Workforce

Amazon has confirmed plans to eliminate approximately 16,000 positions worldwide as part of a significant restructuring effort aimed at streamlining its global operations. This announcement represents the second substantial wave of redundancies at the retail and technology behemoth within just three months, following previous cuts of around 14,000 roles.

UK Operations Impacted by Global Restructuring

While the majority of affected positions are expected to be within the United States, Amazon has confirmed that its UK division will also experience job losses. The company has not disclosed specific numbers regarding how many British employees will be impacted by these latest measures. Amazon currently employs approximately 75,000 people across its various UK operations, which include corporate offices, technology centres, and fulfilment facilities.

Corporate Communication and Strategic Direction

In a detailed blog post addressed to staff members, Beth Galetti, Amazon's Senior Vice President of People Experience and Technology, explained the rationale behind these organisational changes. "As I shared in October, we've been working to strengthen our organisation by reducing layers, increasing ownership and removing bureaucracy," Galetti wrote. She sought to reassure employees about the company's future approach, stating: "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."

Accidental Disclosure and AI Integration Context

The formal announcement follows an accidental disclosure of redundancy proposals to certain staff members earlier in the week. These job cuts occur against a backdrop of increasing artificial intelligence integration within Amazon's corporate functions. Last year, Chief Executive Andy Jassy indicated that the company would likely continue reducing headcount over coming years as it expands deployment of artificial intelligence for numerous operational tasks.

Union Response and Broader Business Changes

Rachel Fagan, an organiser for the GMB trade union, offered strong criticism of Amazon's approach: "Amazon is showing itself for what it is – a company that cannot be trusted to do the right thing by working people in the UK." She further commented: "Now is the time for decision makers to see Amazon for what it is, a company fixated on eye-watering profits at the expense of workers and local people."

These workforce reductions coincide with other significant business changes at Amazon. Earlier this week, the company announced the closure of its remaining Amazon Fresh and Go convenience outlets throughout the United States, choosing instead to concentrate resources on its Whole Foods supermarket operations. This follows last September's revelation that Amazon planned to shut down its 19 Amazon Fresh shops across Britain, a move affecting approximately 250 employees.

Organisational Scale and Future Outlook

Amazon reported having approximately 1.57 million employees globally at the end of September last year, with roughly 350,000 within its corporate workforce while the majority work in its extensive network of warehouses and fulfilment centres. The company continues to navigate the complex balance between technological advancement, operational efficiency, and workforce management as it implements these substantial organisational changes.