From Amazon to Microsoft, tech layoffs to affect over 80,000 amid AI-led restructuring
According to reports, e-commerce giant Amazon said on October 28 that it will lay off 14,000 employees in a bid to reduce bureaucracy and increase investment in artificial intelligence (AI).
Overall, amid news of layoffs at numerous tech companies, at least 81,445 jobs were directly affected by the AI-led restructuring.
In an official statement, Amazon said the layoff was a “continuation” to strengthen operations by “further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets and the things that matter most to our customers’ current and future needs,” AFP reported.
Earlier today, Reuters and Fortune quoted sources reporting that the retail and technology company would lay off a total of 30,000 corporate employees worldwide; these are the largest layoffs since late 2022, when 27,000 positions were cut. A total of 15 lakh people work at Amazon, of which 3.5 lakh are corporate employees.
‘The most transformative AI’: What did Amazon say about layoffs?
“While this will include reductions in some areas and hiring in others, it will mean an overall reduction of approximately 14,000 roles in our corporate workforce,” the statement signed by Amazon Senior Vice President of Human Experience and Technology Beth Galetti said.
According to the AFP report, Galetti added that artificial intelligence is “the most transformative technology we’ve seen since the Internet” and is “enabling companies to innovate faster than ever before.”
Watch: Amazon’s Biggest Layoff: Why 30,000 Corporate Jobs Will Be Eliminated | ‘Reducing the Redundancy of Bureaucracy’
“Looking ahead to 2026, we expect to continue hiring in key strategic areas while also finding additional locations where we can remove layers, increase ownership and achieve efficiency gains,” he said.
Amazon CEO Andy Jassy has been vocal about the adoption of artificial intelligence, stating that those who cannot adapt will be left behind. “Those who embrace this change, become AI-savvy, help us build and develop our AI capabilities internally, and deliver them to our customers will be high impact and well-positioned to help us reinvent the company,” he wrote in a company memo in June.
Which companies made layoffs due to Meta – Artificial Intelligence pressure on Microsoft?
While increasing investments in artificial intelligence are reshaping the industry, Amazon joins the large technology companies that have reduced their staff strength in recent months. Overall, at least 81,445 jobs were directly affected by the AI-led restructuring.
- IBM: IBM has cut nearly 1,000 positions this year as the company moves into its hybrid cloud and artificial intelligence business.
- Aware: The IT services company laid off 3,500 employees in a bid to simplify the organization’s structure.
- Wipro: The Indian IT firm has reportedly laid off 24,516 people to improve cost efficiency and productivity in the industry.
- Intel: In July, Intel Corp reportedly laid off 529 employees as part of a broader cost-cutting plan. As much as 20 percent of chipmakers’ staff is expected to be hit, according to Bloomberg.
(With input from institutions)
