Finology

Amazon plans a new wave of layoffs, sources say | Luck

 

Amazon is preparing to reduce up to 15% of their human resources workers, with other releases probably in other divisions, according to several sources that are familiar with the plans.

They said two sources Luck The fact that the Amazon Human Resources Division – known as PXT or the Technology Technology of People is experiencing – will be hard to affect, but other areas of the Amazon basic consumer business are likely to be affected. It is not possible to find out how many employees in Amazon’s overall plan plan to let go or the exact timing of cuts.

The company released a relatively small number of employees at the beginning of this year in areas such as its consumer unit, Wondery Podcast and Amazon Web Services.

Amazon spokesman Kelly Nantel refused to comment.

The Amazon Division PXT, which reports Senior Vice President Beth Galetti, has more than 10,000 employees around the world and includes a large recruitment team, plus technology staff and other traditional HR roles.

New cuts come when Amazon continues to look for ways to reduce employees’ costs while aggressively investing in AI and infrastructure products – both for internal use and for customer sales. The company said this year it intends to spend more than $ 100 billion on capital expenditures because it creates data centers of cloud and AI.

Amazon CEO Andy Jassy has already supervised the largest release in the history of the company from the end of 2022 to 2023, when the company reduced at least 27,000 company jobs, which represented a high single -digit percentage of the company’s office jobs. Many other large technology companies also decreased at that time when the pandemic retreated and the trends of consumer demand changed.

Now, many employers are trying to take advantage of artificial intelligence – influence for secular and recurring tasks, and finally for more complex jobs – to reduce the need to maintain the same level of human employees on their wages.

Jassy himself is one of them. In June, the CEO fired a little warning to its employees when he encouraged them to welcome this new era of driven AI.

“Those who have accepted this change will become AI, help us build and improve our AI abilities internally and deliver customers, will be well placed to have a high impact and help us to rediscover the company,” he wrote in a national e-mail, which was also published on the Amazon company blog.

At the same time, Jassy also realized that he would not be on the bus for everyone on the bus: “We expect it to reduce our overall workforce of the businesses, as we get an increase in efficiency from the extensive use of AI throughout the company.”

Jassy, ​​who replaced the founder of Amazon Jeff Bezos in the work of the CEO in 2021, gained the reputation of the cost (although it is fair, he inherited a society that many claim that he was wasting and inflated in some areas). Amazon executives regularly require managers to achieve a certain percentage goal for non -no longer wear or ura – basically the percentage of employees that the company would be in order, whether through voluntary departure, “managed” or through formal release. But the sources said that Luck that these curse is discussed differently internally than the typical URA process.

While Amazon plans to lay off corporate roles, the company announced on Tuesday its typical holiday hiring. This year, the company will hire 250,000 seasonal employees within its American warehouse and logistics networks.

Amazon shares in this calendar year dropped a little more than 1%, but 15% higher than 12 months ago. The company will report earnings at the end of this month.

Are you a current or former Amazon employee with the idea of ​​this topic or a tip that you can share? Contact Jason del Rey at jason.delrey@fortune.com, jasondelrey@protonmail.comor through the applications for sending messages signal and WhatsApp on 917-655-4267. You can also contact him to Linkedin or at @Delrey we X, @jdelrey on fibers and blues.

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