Layoffs in Amazon: Tech and e-commerce giant Amazon is once again preparing for large-scale layoffs. According to reports, the company is planning to lay off 14,000 employees in early 2025.

This move is being described as part of the company’s strategy to increase efficiency and cut costs.

Annual savings of $3.6 billion from layoffs

According to a report by Financial Express, Amazon is expected to save US$2.1 to US$3.6 billion annually from this layoff. Citing a Morgan Stanley report, it has been said that this cut will affect the company’s global employees. Currently, Amazon has 1,05,770 employees, which will be reduced to 91,936 after the layoffs. This step is being taken in the direction of maximizing the growing impact and benefits of artificial intelligence (AI).

CEO Andy Jassy’s strategy

Amazon CEO Andy Jassy has adopted this strategy to make the company more agile. He has set a target of increasing the number of individual contributors by 15% compared to employees by the first quarter of 2025. Jesse says ‘Our goal is to simplify the decision-making process and speed up operations.’

Fluctuation of employee numbers

Amazon’s employee numbers have seen a big change in the last few years. In 2019, the company had 7,98,000 employees which increased to 1.6 million by the end of 2021. 27,000 jobs were cut between 2022 and 2023. Now another big cut is going to be announced in 2025. Along with this, the company will limit recruitment for senior roles and review salary structures.