Amazon dropped a bombshell on Wednesday, announcing plans to cut roughly 16,000 jobs across the company. The tech giant says the move is all about stripping away red tape and making the company move faster, even as it pours money into artificial intelligence.
In a note sent to staff, a top HR executive explained that these cuts are the final piece of a restructuring plan that actually started back in October. She described the goal as “reducing layers” and getting rid of bureaucracy so employees can take more ownership of their work.
For most workers in the U.S. facing these cuts, there is a small safety net. They will have 90 days to try and find a different job inside the company. If that doesn’t work out, Amazon will offer severance pay and other support to help them move on.
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Galetti tried to reassure the remaining staff that this isn’t the new normal. She insisted that Amazon isn’t planning to announce mass layoffs every few months. “We’re still in the early stages of building every one of our businesses,” she wrote, noting that they will keep hiring for key roles where the company is trying to grow.
The job cuts weren’t the only big news out of Amazon this week. Just a day earlier, the company laid out a new strategy for its grocery business. It’s a bit of a mixed bag: they plan to open over 100 new stores and expand same-day fresh food delivery by 2026.
However, they are also shutting down their cashier-less Amazon Go and Amazon Fresh physical stores. Some of those locations will eventually be converted into Whole Foods markets instead.
While his old company tightens its belt, founder Jeff Bezos is making waves elsewhere. Since stepping down as CEO in 2021, he has turned his attention to the booming world of AI. Reports from November suggest Bezos is heavily involved with a new startup called Project Prometheus.
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He isn’t just writing checks, either. The New York Times reported that Bezos has taken a hands-on role as co-CEO of the venture, which launched with a massive $6.2 billion in funding. That kind of cash puts the startup right in the ring with heavy hitters like OpenAI, Microsoft, and Google, who are all racing to dominate the field.
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