Amazon is slashing about 16,000 corporate jobs in the second round of mass layoffs for the ecommerce company in three months.
The tech giant has said it plans to use generative artificial intelligence to replace corporate workers. It has also been reducing a workforce that swelled during the pandemic.
Beth Galetti, a senior vice president at Amazon, said in a blog post Wednesday that the company has been “reducing layers, increasing ownership, and removing bureaucracy.”
The company did not say what business units would be impacted, or where the job cuts would occur.
The latest reductions follow a round of job cuts in October, when Amazon said it was laying off 14,000 workers. While some Amazon units completed those “organizational changes” in October, others did not finish until now, Galetti said.
She said U.S.-based staff would be given 90 days to look for a new role internally. Those who are unsuccessful or don’t want a new job will be offered severance pay, outplacement services and health insurance benefits, she said.
“While we’re making these changes, we’ll also continue hiring and investing in strategic areas and functions that are critical to our future,” Galetti said.
CEO Andy Jassy, who has aggressively cut costs since succeeding founder Jeff Bezos in 2021, said in June that he anticipated generative AI would reduce Amazon’s corporate workforce in the next few years.
The layoffs announced Wednesday are Amazon’s biggest since 2023, when the company cut 27,000 jobs.
Meanwhile, Amazon and other Big Tech and retail companies have cut thousands of jobs to bring spending back in line following the COVID-19 pandemic. Amazon’s workforce doubled as millions stayed home and boosted online spending.
The job cuts have not arrived with a company on shaky financial ground.
In its most recent quarter, Amazon’s profits jumped nearly 40% to about $21 billion and revenue soared to more than $180 billion.
Late last year after layoffs, Jassy said job cuts weren’t driven by company finances or AI.
“It’s culture,” he said in October. “And if you grow as fast as we did for several years, the size of businesses, the number of people, the number of locations, the types of businesses you’re in, you end up with a lot more people than what you had before, and you end up with a lot more layers.”
Hiring has stagnated in the U.S. and in December, the country added a meager 50,000 jobs, nearly unchanged from a downwardly revised figure of 56,000 in November.
Labor data points to a reluctance by businesses to add workers even as economic growth has picked up. Many companies hired aggressively after the pandemic and no longer need to fill more jobs. Others have held back due to widespread uncertainty caused by President Donald Trump’s shifting tariff policies, elevated inflation, and the spread of artificial intelligence, which could alter or even replace some jobs.
While economists have described the labor situation in the U.S as a “no hire-no fire” environment, some companies have said they are cutting back on jobs, even this week.
On Tuesday, UPS said it planned to cut up to 30,000 operational jobs through attrition and buyouts this year as the package delivery company reduces the number of shipments from what was its largest customer, Amazon.
That followed 34,000 job cuts in October at UPS and the closing of daily operations at 93 leased and owned buildings during the first nine months of last year.
Also on Tuesday, Pinterest said it plans to lay off under 15% of its workforce, as part of broader restructuring that arrives as the image-sharing platform pivots more of its money to artificial intelligence.
Shares of Amazon Inc., based in Seattle, rose slightly before the opening bell Wednesday.
Hong Kong’s leader said on Monday he will ask Beijing to rule whether to let foreign lawyers be involved in national security cases after the city’s top court allowed a prominent pro-democracy publisher to hire a British lawyer for his upcoming trial.
John Lee said the government would ask for a postponement of Jimmy Lai’s high-profile trial that was due to start Thursday. But he did not offer a timetable for the interpretation that could effectively preempt the court judgment.
“At present, there is no effective means to ensure that a counsel from overseas will not have conflict of interest because of his nationality. And there is also no means to ensure that he has not been coerced, compromised, or in any way controlled by foreign governments, associations or persons,” he said.
The move was targeting overseas counsels who do not have the general practice qualification to carry out legal service in Hong Kong, he added.
Lai, the founder of the now-defunct Apple Daily and one of the most prominent figures in the city’s pro-democracy movement, was arrested after Beijing imposed a tough national security law to crack down on dissent following widespread protests in 2019. He faces collusion charges and a maximum penalty of life imprisonment.
While the city’s secretary for justice was appealing an earlier ruling that approved Lai to hire a veteran British lawyer at the top court, pro-Beijing politicians and newspapers also voiced objections over the last few days.
A Massachusetts businessman has been convicted of fraudulently seeking more than $13 million in federal coronavirus pandemic relief loans, federal prosecutors said.
Elijah Majak Buoi, 40, of Winchester, was convicted Thursday of four counts of wire fraud and one count of making a false statement to a financial institution following a three-day trial in Boston federal court, according to U.S. Attorney for Massachusetts Rachael Rollins’ office.
Prosecutors said Buoi submitted six loan applications through the Paycheck Protection Program but misrepresented the number of employees and payroll expenses for his startup company, Sosuda Tech. He also submitted fraudulent IRS tax forms to support his applications, they said.
The loan program was part of the Coronavirus Aid, Relief and Economic Security, or CARES, Act that allowed qualifying small businesses and other organizations to receive forgivable loans to cover payroll, mortgages, rent and utilities.
Buoi was able to obtain a $2 million loan before he was arrested in June 2020. Rollins’ office said the government has recovered nearly all of the money.
Roger Stone, a longtime confidant of President Donald Trump, was sentenced to more than three years in prison Thursday for obstructing a congressional investigation in a case that has sparked fears about presidential interference in the justice system.
Soon after Judge Amy Berman Jackson pronounced sentence, Trump publicly decried Stone’s conviction as unfair and prominent Republican legislators were giving tacit support for a pardon. But Trump said he wasn’t ready to act just yet.
“I want the process to play out. I think that’s the best thing to do because I would love to see Roger exonerated,” he said. “I’m going to watch the process. I’m going to watch very closely. … At some point I’ll make a determination.”
The case was marked by the Justice Department’s extraordinary about-face on a sentencing recommendation and a very public dispute between Trump and Attorney General William Barr, who said the president was undermining the department’s historical independence and making “it impossible for me to do my job.”
The president responded by asserting that he was the “chief law enforcement officer of the federal government.”
Stone was convicted in November on all seven counts of an indictment that accused him of lying to Congress, tampering with a witness and obstructing the House investigation into whether the Trump campaign coordinated with Russia to tip the 2016 election.
He was the sixth Trump aide or adviser to be convicted on charges brought as part of special counsel Robert Mueller’s investigation into possible Russian interference in the 2016 election.
Everyone knows Wisconsin will be in the spotlight for the presidential race in 2020. It's one of just a few states where the electorate is so evenly divided, it could swing either way. That is the biggest prize on the ballot this year, but it's far from the only contest for Wisconsin voters. Here are the highlights of what's on Wisconsin's political horizon in 2020:
PRESIDENTIAL RACE
Wisconsin will be the focus of the presidential race all year. President Donald Trump won Wisconsin by fewer than 23,000 votes in 2016 and both sides expect another close race. Wisconsin is one of just a few states expected to be competitive and for that reason, many expect it to be the epicenter of the fight for the White House. Democrats will get a chance to vote for their nominee on April 7. With a large field and unsettled race, many expect it to still be undecided for Wisconsin's primary. Milwaukee hosts the Democratic National Convention in July and both sides are expected to flood the state with money ? and candidate appearances ? before the November election.
SUPREME COURT
Wisconsin elects its Supreme Court justices and one of them who was appointed by then-Gov. Scott Walker, a Republican, is up for election in April. Dan Kelly was appointed in 2016 and now he's running for a full 10-year term. He's part of the current 5-2 conservative majority on the court. If he wins, that majority will not change. But if one of two liberal candidates prevail, the conservative hold on the court will drop to 4-3. Dane County Circuit Judge Jill Karofsky and Marquette University law professor Ed Fallone have Democratic support in the race. A Feb. 18 primary will narrow the field to two candidates. The winner will be elected on April 7. That is the same day as Wisconsin's presidential primary, when Democratic turnout is expected to be high. That could spell trouble for Kelly.
Supreme Court Justice Ruth Bader Ginsburg is making her first public appearance since undergoing lung cancer surgery in December.
The 85-year-old Ginsburg is attending a concert at a museum a few blocks from the White House that is being given by her daughter-in-law and other musicians. Patrice Michaels is married to Ginsburg’s son, James. Michaels is a soprano and composer.
The concert is dedicated to Ginsburg’s life in the law.
Ginsburg had surgery in New York on Dec. 21. She missed arguments at the court in January, her first illness-related absence in more than 25 years as a justice.
She has been recuperating at her home in Washington since late December.
Ginsburg had two previous bouts with cancer. She had colorectal cancer in 1999 and pancreatic cancer in 2009.
The justice sat in the back of the darkened auditorium at the National Museum of Women in the Arts.
The National Constitution Center, which sponsored the concert, did not permit photography.
James Ginsburg said before the concert that his mother is walking a mile a day and meeting with her personal trainer twice a week.
The performance concluded with a song set to Ginsburg’s answers to questions.
In introducing the last song, Michaels said, “bring our show to a close, but not the epic and notorious story of RBG.”
The Supreme Court began its term with the tumultuous confirmation of Justice Brett Kavanaugh, followed by a studied avoidance of drama on the high court bench — especially anything that would divide the five conservatives and four liberals.
The justices have been unusually solicitous of each other in the courtroom since Kavanaugh's confirmation, and several have voiced concern that the public perceives the court as merely a political institution. Chief Justice John Roberts seems determined to lead the one Washington institution that stays above the political fray. Even Roberts' rebuke of President Donald Trump, after the president criticized a federal judge, was in defense of an independent, apolitical judiciary.
The next few weeks will test whether the calm can last. When they gather in private on Jan. 4 to consider new cases for arguments in April and into next term, the justices will confront a raft of high-profile appeals.
Abortion restrictions, workplace discrimination against LGBT people and partisan gerrymandering are on the agenda. Close behind are appeals from the Trump administration seeking to have the court allow it to end an Obama-era program that shields young immigrants from deportation and to put in place restrictive rules for transgender troops.