Amazon to lay off 14,000 employees despite $18 Billion profit; Is AI reshaping the workforce?

Despite reporting a massive $18 billion profit and planning $120 billion in investments, Amazon has announced layoffs of 14,000 workers worldwide. What prompted this cost-cutting move, and how will it impact employees in India?

New Delhi: Amazon, the e-commerce giant, has initiated a massive layoff plan, affecting approximately 14,000 employees globally, including around 1,000 in India. The decision, which started on October 28, comes as a surprise to many, given the company reported $18 billion in profit in the last quarter and continues to plan investments totaling $120 billion.

Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, informed employees via email that the layoffs were intended to reduce bureaucracy, remove redundant layers, and reallocate resources toward initiatives that directly impact customer needs. “While this decision has been extremely difficult, it is aimed at ensuring the company is focused on what matters most to our customers,” she wrote.

Departments Impacted and Numbers in India

The layoffs will affect employees across multiple departments, including finance, marketing, technology, human resources, and global teams. India alone will see about 1,000 positions eliminated. Globally, around 350,000 corporate workers will be impacted. The job cuts will also touch Amazon Web Services, operations, PXT services, and the device division, signaling a broad restructuring across the organization.

Despite the significant profits, the scale of layoffs has left employees puzzled. Analysts say this may be part of Amazon’s long-term strategy to optimize resources and adopt advanced technologies, particularly artificial intelligence, more aggressively.

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Employee Communication and Support Measures

Employees were notified of their roles being terminated through emails sent by Beth Galetti on the morning of October 28. The message emphasized that the company would support affected staff throughout the transition. Amazon has committed to offering training programs to help employees secure new jobs, along with retirement packages. Additionally, laid-off employees will continue to receive full salaries and benefits for 90 days following their termination.

Why Amazon is Cutting Jobs Despite Profits?

Amazon’s layoffs reflect a larger trend of tech companies embracing AI to automate processes and reduce dependency on human labor. CEO Andy Jassy had previously urged employees to adapt to AI, acquire new skills, and support the company’s AI integration initiatives. The layoffs, therefore, are seen as a move to reassign existing resources to AI-driven roles and streamline the organization’s workforce.

Industry experts suggest that while profitability remains high, companies like Amazon are recalibrating their workforce to align with technological shifts, long-term efficiency goals, and cost management strategies.

How Employees Can Safeguard Their Careers?

With Amazon initiating widespread layoffs, employees must proactively plan for job security. Upskilling in areas like artificial intelligence, cloud computing, and data analytics can make workers more competitive in the evolving tech landscape. Networking within industry circles, updating professional profiles, and exploring freelance or consultancy opportunities can provide alternative income streams. Additionally, keeping track of internal openings and leveraging company-provided training programs or severance support can help employees transition smoothly. Building financial cushions and maintaining flexibility in career choices will be crucial for navigating this period of uncertainty.

Looking Ahead

The news of Amazon’s layoffs has generated widespread discussion about job security in the tech sector and the increasing role of AI in workplace transformations. As the company navigates these changes, both domestic and global employees face a period of uncertainty, highlighting the growing tension between profit generation and workforce management in modern corporate environments.