• Amazon is cutting 16,000 jobs globally in a second round of layoffs.
• The layoffs follow a previous reduction of 14,000 jobs in October 2022.
• CEO Andy Jassy has linked the cuts to increased adoption of AI technologies.
• Impacted employees will have 90 days to seek new roles within the company.
• Amazon is also closing multiple physical stores as part of its restructuring.

Amazon announced on January 28 that it is cutting approximately 16,000 jobs globally as part of a significant restructuring effort following pandemic-era over-hiring and a notable push toward artificial intelligence integration. This marks the second major round of layoffs within just three months, following the elimination of 14,000 jobs in October 2022. The cuts are expected to impact various departments, including Amazon Web Services and human resources, and account for nearly 10% of the corporate workforce, which totals around 1.58 million employees across the company. These changes come amid a broader goal of trimming about 30,000 corporate roles in total, according to Reuters and Channel News Asia.

CEO Andy Jassy emphasized that the layoffs are part of a wider strategy to "run the $2 trillion company like the world's largest startup," and they will allow Amazon to streamline operations by reducing layers of management and bureaucracy. In a memo, senior vice president Beth Galetti stated that U.S. employees affected by the layoffs will have a 90-day window to seek new positions within the company before severance packages are initiated. The cuts come despite Amazon's strong financial performance, with nearly $21 billion in profits reported last quarter, highlighting the shift toward a more automated workforce supported by AI innovations according to CBS News and South China Morning Post.

The integration of artificial intelligence plays a crucial role in these job reductions, as Amazon is increasing its investments in AI technologies, which Jassy noted would reduce the need for corporate staff over time. "We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company," Jassy mentioned in previous communications. This strategy aligns with broader trends in the tech sector, where companies like Facebook and Microsoft have made similar workforce adjustments amid a heavy focus on AI, as reported by India Times and Al Jazeera.

In addition to corporate layoffs, Amazon has decided to close various physical retail operations, including its cashierless Amazon Go stores and Fresh grocery locations, which underscores the company's shift toward reliance on technology over human labor. This will culminate in the closure of over 70 locations across the U.S., with some stores potentially being converted into Whole Foods Market locations, further reflecting Amazon's strategic realignment and investment in areas deemed critical for future growth, as noted by CBS News and India Times.