The wave of layoffs has not stopped: Amazon is about to cut a record 30,000 people?

(Dan Tri) - The drastic cuts come as Amazon is increasing its use of AI, especially for repetitive tasks.

On October 27, Reuters, citing sources close to the matter, reported that Amazon (USA) planned to cut 30,000 jobs, starting on October 28. The company is seeking to reduce costs and curb excessive hiring during the peak demand period of the pandemic.

If implemented, this would be the largest layoff in Amazon's history. Prior to this, the tech giant had already been gradually reducing staff across various departments, including devices, communications, and podcasts. Conversely, Amazon is increasing its use of AI, particularly for repetitive tasks.

"This move shows that the benefits of using AI to increase office productivity are significant enough to allow them to reduce staff considerably. Amazon is also under short-term pressure to recoup long-term investment costs in AI infrastructure," said Sky Canaves, an analyst at eMarketer.

Is Amazon about to cut another 30,000 jobs? (Photo: Reuters).

In fact, the wave of layoffs in general, and in the technology sector in particular, began in 2023 and shows no signs of stopping, although the pace has slowed. Besides pressure to cut costs, decisions to change business strategies, and restructuring, technological innovation – especially AI – is also a contributing factor.

In May, another global giant, Microsoft, laid off 3,000 employees due to restructuring, bringing the total number of layoffs in the first half of the year to 12,000. The corporation also plans to cut an additional 9,000 people (equivalent to 4% of its global workforce).

Also in May, cybersecurity company CrowdStrike announced plans to lay off 5% of its workforce to keep pace with the development of artificial intelligence (AI).

Domestically, the latest survey by a job website, conducted on 2,000 workers and 1,000 businesses, shows a significant wave of job cuts in Vietnam across the manufacturing, retail, finance, and technology sectors.

Specifically, in the first half of the year, more than 2,500 bank employees were laid off, and many industrial parks also reported large-scale cuts in the textile, footwear, and electronics industries.

Source: https://dantri.com.vn/kinh-doanh/lan-song-sa-thai-chua-dung-lai-amazon-sap-cat-giam-ky-luc-30000-nguoi-20251028123838704.htm