Amazon (AMZN) has slashed its workforce for the second time in less than six months, as the company continues to adjust its staffing plans after a hiring surge during the pandemic.
The company announced plans on Wednesday to cut 16,000 jobs, with executive Beth Galetti writing in a blog post that the cuts were intended to reduce layers, increase ownership and reduce bureaucracy.
Last October, Amazon laid off 14,000 employees because the company “convinced we needed a leaner organization with fewer layers and more ownership to serve our customers and business as quickly as possible.”
Galetti said in Wednesday’s report that the company is not planning large-scale rolling layoffs every few months.
In late 2024, CEO Andy Jassy said he wanted the company to “operate like the biggest startup in the world” as part of an announcement to cut management and set new expectations for corporate employees to come to work five days a week.
As of September 30, Amazon had approximately 350,000 corporate employees.
This week’s layoffs come after the company announced plans to close Amazon Fresh and Amazon Go stores to focus on delivery services and expand Whole Foods, which Amazon acquired in 2017.
“While we are seeing encouraging signals in Amazon-branded brick-and-mortar grocery stores, we have not yet created a truly unique customer experience with the right economic model required for large-scale expansion,” the company said. Amazon plans to evaluate each Fresh and Go store location to see which ones can be converted into Whole Foods stores, according to people familiar with the matter.
Wedbush analyst Scott Devitt told clients in a note that Amazon’s grocery plans are “an important step in Amazon’s broader strategy and should help the company gain incremental share in perishable categories where it has historically struggled.”
The company is expected to report fiscal fourth-quarter earnings after the market close on February 5.
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Brooke DePalma is a reporter for Yahoo Finance. Follow her on X @Brooke DePalma Or send an email to bdipalma@technology shoutfinance.com.
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