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 quoted a close source as saying that Amazon (USA) planned to cut 30,000 workers, starting October 28. The company is looking to reduce costs and tighten its excessive hiring during the peak demand period during the pandemic.

If implemented, this would be the largest cut in Amazon’s history. Previously, the technology company has also gradually reduced staff in departments including devices, media and podcasts. In contrast, Amazon is increasing the use of AI, especially for repetitive tasks.

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

Amazon is about to cut another 30,000 employees? (Photo Reuters).

In fact, the wave of layoffs in general and in the technology sector in particular started in 2023 and has shown no signs of stopping, although the pace has slowed down. In addition to the pressure to cut costs, the decision to change business strategy, and restructuring, technological innovation - especially AI - is also the cause.

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

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

Domestically, a recent survey by a job website of 2,000 workers and 1,000 businesses shows a strong wave of layoffs in Vietnam in the manufacturing, retail, finance and technology sectors.

Specifically, in the first half of the year, more than 2,500 banking staff 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