Amazon Axes Another 1,000 Jobs as Thousands of Workers Face Cuts

Amazon is cutting another batch of jobs as it reassesses the huge workforce built during the pandemic. The latest changes affect several parts of the business, while the company continues to expand in other areas.

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Amazon Axes Another 1,000 Jobs as Thousands of Workers Face Cuts
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Amazon is cutting around 1,000 jobs across the UK, US and India, adding to a much larger wave of redundancies at the online retail giant since last year. The latest cuts affect customer service, selling partner services and Amazon Stores roles. They follow around 30,000 job reductions announced across the company since last year.

Amazon Cuts Jobs Across Three Countries

The latest redundancies affect employees in the UK, US and India. Amazon described the number of roles affected in the latest round as relatively small compared with its wider workforce, while the company continues to restructure parts of its business.

The affected positions include customer service roles and jobs supporting third-party sellers on Amazon’s platform.

 

Jeff Bezos Points to Pandemic Overhiring

Amazon founder Jeff Bezos said the company’s workforce had expanded rapidly during the Covid-19 pandemic as consumers shifted heavily toward online shopping. During an interview with Fox News, Bezos said people were staying home and ordering more goods, creating a period of unusually high demand for Amazon, reports The Sun.

The company responded by increasing its headcount, but demand later changed as consumers returned to stores and normal activities. Bezos said the current reductions are partly linked to the workforce expansion that took place during that period.

AI Has Also Been Linked to Earlier Cuts

Amazon has previously connected its wider restructuring programme to artificial intelligence and productivity. The company has been investing heavily in AI as it seeks to automate and streamline parts of its operations.

The latest job reductions therefore come against the backdrop of both the post-pandemic workforce adjustment and Amazon’s growing use of AI technologies. The company has not indicated that every position affected by the latest cuts is directly linked to AI.

Amazon Is Still Hiring and Investing in the UK

The redundancies are taking place alongside continued investment in Amazon’s UK operations. The company increased pay for tens of thousands of warehouse and operations workers in September.

Its minimum starting wage for operations staff rose by as much as 5.6%, with hourly pay now starting at £15.10 and reaching £16.10 depending on location. Amazon has also continued opening fulfilment centres and logistics facilities across the UK.

The contrasting moves show that the job cuts are concentrated in particular areas of the business rather than representing a complete withdrawal from UK hiring.

Around 30,000 Jobs Have Been Cut Since Last Year

The latest reductions add to a much larger restructuring programme. Amazon has eliminated around 30,000 positions since last year, according to the figures cited in the report. The company has been adjusting its workforce while investing in automation, artificial intelligence and its logistics network.

For employees, the latest cuts add another round of uncertainty after several years in which Amazon expanded its workforce rapidly during the pandemic and subsequently began reducing headcount.

Amazon’s Workforce Is Being Reshaped

The latest job cuts highlight the changes taking place across Amazon as the company adjusts to post-pandemic demand and expands its use of technology. At the same time, Amazon continues to invest in fulfilment centres, logistics infrastructure and frontline operations, particularly in the UK.

The result is a workforce being reshaped rather than simply reduced, with some positions disappearing while investment and recruitment continue in other parts of the business.

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