Did Amazon Cut 14,000 Jobs Because Of AI
Recently it was reported that Amazon was cutting 14,000 jobs. Now though this is nothing new with one of the largest e-commerce retailers, many were speculating that the job cuts were because of AI replacements.
Amazon Chief Executive Andy Jassy said the job cuts had nothing to do with money or AI but rather "culture" but what does he mean by that? Regardless of his explanation, it still has something to do with AI at some point.
AMAZON SAYS THEY NEED TO STAY "NIMBLE"
According to Amazon, their quarterly sales grew 13% year-on-year to $180 Billion Dollars. If you are still thinking that you shouldn't sign up to their affiliate "Associates" program because of their low commissions, think again.
Earning $180 BILLION quarterly is HUGE! No, Amazon is not hurting for money and these 14,000 job cuts are definitely not about money problems. Jassy said that the company is making the cuts to stay "nimble" and lean.
During the years of Covid and shortly afterwards, Amazon added many employees to handle the increased sales. However, many of these added employees were not all delivery drivers but rather administrative employees.
Not long ago I blogged about Why Affiliate Marketing & WA Keeps Growing and I showed you how big of an influence Amazon has in this NY & NJ area. Though I focused on just this area, they are like this everywhere.
Almost every mega-sized Amazon distribution center I pass on a daily basis will have only a dozen employee cars parked outside. Why? These distribution centers are mostly automated and do not need many workers.
AMAZON ISN'T HURTING FOR MONEY, THEY'RE JUST OVER EMPLOYED
So these 14,000 job cuts Amazon is implementing are most likely going to be in administrative and management areas. When Amazon ramped up employees just after Covid, it was necessary for that time. Andy Jassy said...
"You end up with a lot more people than what you had before, and you end up with a lot more layers … sometimes without realizing it, you can weaken the ownership of the people that you have who are doing the actual work."
In layman's terminology, Amazon is cutting the fat, cutting job layers they deem are not essential anymore and can be replaced down the road when Artificial Intelligence becomes more efficient. That should be no surprise.
This statement by Andy Jassy makes it clear. "We are committed to operating like the world’s largest startup, and … that means removing layers." These 14,000 job cuts have nothing to do with money, but AI will replace some.
If you don't consider Amazon as an affiliate program to join, even if their commissions are really low, just know that they will continue to grow and AI will make things more efficient for everyone. What do you think?
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Recent Comments
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AI replacing administrative jobs is only just starting and it will soon be normal. If Amazon is planning and preparing for it, then it will happen and probably sooner than most of us think.
Amazon is in a strong niche market and has a firm grip. I wondered when the Covid hiring would be released. Now we all know.
Yes we do. With the exception of delivery and long haul truck drivers, the extra administrative workforce that was hired during and after Covid was bound to be cut. Plus most of those jobs can be accomplished by AI and I have no doubt that was part of Amazon’s decision to layoff those workers.
Every product that Amazon sells is associated with a niche. If your niche is Basketball Shoes for kids, Amazon has many types they sell.
All you have to do is have a website about your niche, sign up for the Amazon Associates Program and place their affiliate links in your website content where appropriate.
boomergp08 covered that in his reply. Amazon has probably millions of products. Household, lawncare, beauty, etc. etc. Where is your passion?
Think about something you love to talk about. Research it on Amazon. Apply for Amazon Associates Program, find your link, and blog to your hearts content. Be sure to include your link in each blog.
if you have not gone through WA's Core Training lately, it okay to take a refresher. Kyle is in the middle of WA Boot Camp usually on Mondays. The training is fundamental.
To Your Success Always.
I did too and Amazon has a huge presence in this area. Fortunately for the delivery drivers, these layoffs don’t effect them.
At the moment, AI cannot replace the human delivery person but it can replace the office worker and that is what Amazon seems to be doing.
Ohh ok, I see, ai is very talented as much as human. Ai can’t handle knowledge but not labor works unless there is a robot ai. 🤖.
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By end of year I was told Amazon will cut 600,000 jobs , southwire just terminated about 200 men at southwire. Being automated. UPS the same
It wouldn't surprise me. In this area the majority of Amazon employees are delivery and long haul truck drivers. These jobs are a lot harder for AI to replace.
However, Amazon uses a lot of computer control automation in their huge distribution hubs. Gigantic buildings with maybe only two dozen employees operating it, most of it being operated by robots picking and sorting products.
Yes I think these cuts will be in all the ware houses.
I can see that happening and probably right after the Christmas rush.