Mumbai, October 12: Last week, Amazon CEO Andy Jassy announced the company's plan to cut up to 14,000 jobs amid its efforts to save costs. The Amazon layoffs were expected to affect a wide range of roles across several departments. However, earlier, it was not known which types of roles would be affected. The e-commerce giant announced that the job cuts would be implemented by early 2025 and help the company save USD 3 billion.

According to reports, Amazon layoffs are part of CEO Andy Jassy's cost-saving strategy, which would help the company streamline its operations and make better decisions. The layoffs are also expected to help it tackle bureaucratic hurdles. Amazon CEO Andy Jassy revealed that the job cuts would apply to corporate employees, not the "front line" staff. Boeing Layoffs: Aviation Giant To Lay Off 17,000 Employees, 10% of Its Workforce in Coming Months To Stay Competitive.

The front-line staff handles warehouse and delivery operations at Amazon and is the majority of the workforce. Amazon has reportedly around 1 million "front-line" employees out of a global workforce of 1.5 million. Amazon announced that it would reduce the workforce from product management, marketing and engineering divisions.

Morgan Stanley conducted research and found that Amazon layoffs would likely help the e-commerce giant save up to USD 3 billion annually. The reports said that the company would reduce the workforce to operate like the world's largest startup. Amazon CEO Andy Jassy said that the business needed "strong urgency, high ownership, fast decision-making, scrappiness and frugality, deeply connected collaboration." 

The reports mentioned that Amazon stated that "now is the right time" to adjust its workforce as it recently had several business mergers. The e-commerce giant has reportedly told all the teams to examine their organizational structures and, if possible, cut some of the roles. TikTok Layoffs: ByteDance’s Social Media Platform Lays Off Hundreds of Employees To Shift Focus Towards AI in Content Moderation.

Through the layoffs, Amazon aims to remove the superfluous management tiers, reduce administrative barriers, and help staff members make quick choices. The Amazon layoffs are estimated to help the company save USD 2.1 billion to USD 3 billion yearly, which would account for 3 to 5% of the company's projected operating profits for 2025.

(The above story first appeared on LatestLY on Oct 12, 2024 01:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).