Amazon has reportedly announced plans to shed 800 to 1,000 jobs in India across functions such as finance, marketing, HR and technology. The move comes as part of its increasing focus on artificial intelligence (AI) and driving efficiencies, and aligns with Amazon’s global strategy to streamline operations by incorporating AI across processes and reducing manpower by about 14,000 employees, nearly 4 per cent of its global workforce.
Explaining the rationale behind the layoffs, Neeti Sharma, CEO, TeamLease Digital, says that as most companies transition from traditional roles to more AI-driven functions, in the short term, this could often mean reducing headcount and lowering costs, which is what Amazon is doing. However, Sharma adds, in the long run, this shift will create demand for candidates with skills relevant to the new structure, rather than conventional skill-sets.
According to Sanju Ballurkar, president-Experis, ManpowerGroup, the layoffs at Amazon are also a result of over-hiring during the post-pandemic surge, cost pressures and the rapid rise of generative AI.
These layoffs, Ballurkar explains, are more about workforce realignment to recalibrate post-pandemic growth and prioritise efficiency; a trend likely to be mirrored across industries. “Many organisations are streamlining operations while investing strategically in AI, cloud technologies and automation, reshaping priorities for long-term resilience and innovation,” he says.
For employees, this means it’s time to upskill, especially in digital and AI-related domains, and focus on roles that add real business value. This has become even more critical, Ballurkar notes, because unlike earlier cycles of technological transformation, AI is impacting even high-performing employees, indicating a structural shift rather than performance-related issues. “Employees must now pivot from execution-heavy roles to innovation- and strategy-oriented roles, which are attracting sustained investment,” he adds.
Companies too, Sharma of TeamLease Digital says, have a role to play in minimising layoffs by planning workforce needs more carefully, encouraging internal reskilling, adopting flexible staffing models and reducing costs through process improvements rather than job cuts.