Amazon to cut 30,000 corporate jobs 9% of worldwide office workforce

6,575 Views | 87 Replies | Last: 5 mo ago by infinity ag
Muy
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AG
I can't imagine these companies are allowed to send their drones too far from their store or distribution facility yet, and the Walmart is much closer to homes than the Amazon facility a few miles away.
YouBet
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AG
Muy said:

There's a Walmart near me with a bunch of drones. It's fun to watch them, but their deliveries are so small I can't imagine this being a sustainable way to get people their groceries.


I think this is another gimmick. It's not cost effective nor scalable.

In theory, it's only feasible for high value items that require speed to delivery in high density markets, but then the damage/lost rate for a high value item being flown by drone would seem to be high enough that it offsets that value, depending on the product being moved. I have not looked enough at the damaged/lost rates being seen with this though. Not sure if it's public information.

The coolest and most worthwhile use case I've seen is organ delivery from airports to hospitals. Organs for transplant have a very limited shelf life so speed is paramount. Even cutting the travel time over road from airport to hospital is critical when minutes/seconds matter.
YouBet
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infinity ag said:

YouBet said:

Amazon and UPS firings can be attributed to COVID hiring. Not all of it but much of it. We know they hired up big time during COVID. You can go back and peruse the business articles in depth on this.

Amazon achieved 1 million employee headcount during COVID with massive hiring to account for the huge shift towards online living when everyone went home from COVID.

So, a lot of this is right sizing back down which they've been doing over the last few years.


Ma man, COVID was 5 years ago. How long will this excuse be trotted out? They fired COVID hires in 2022. They are all gone.


This is probably the tail end of it. I think it's valid for the massive logistics companies like these two.

Under the covers of Amazon, a separate trend is that a lot of their contract drivers are quitting because the value proposition turned out to be fake news once you got past year 1 of operating.
akm91
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AtticusMatlock said:

This is the corporate restructuring that the new CEO has been talking about for a few years. They are consolidating layers of management to flatten the org. Does not have anything to do with AI. They have 350,000 corporate employees and just like a lot of companies they think they overhired during the pandemic at inflated wages.

Corporate jobs all across the US is impacted by AI. I've been instructed to look into ways AI can reduce the number of software engineers in my area. When you don't need as many [insert corporate job], you also don't need as many mangers, directors and etc.
infinity ag
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deddog said:

Muy said:

Bottom line is Amazon is a massive part of the supply chain and this is a good thing for them to become more profitable and efficient.


It makes for a **** job market though. Right now and for the foreseeable future, employers are king. That's bad news for employees.


News like this will juice up their stock. AMZN stock has been a deddog in recent times (pun very much intended).

Bad news for employees, no doubt as those 14-30k people are in the market competing. Learn to invest is the what people need to do to pay rent and mortgages. That worked for me and will work for everyone else. Our poor kids are screwed though.

I am curious to impacts on the housing markets. $3M houses must be common so mortgages are about $20k and now there is no salary and people don't know how to invest. Defaults will rise, H1Bs will go back. It will be chaos.
infinity ag
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akm91 said:

AtticusMatlock said:

This is the corporate restructuring that the new CEO has been talking about for a few years. They are consolidating layers of management to flatten the org. Does not have anything to do with AI. They have 350,000 corporate employees and just like a lot of companies they think they overhired during the pandemic at inflated wages.

Corporate jobs all across the US is impacted by AI. I've been instructed to look into ways AI can reduce the number of software engineers in my area. When you don't need as many [insert corporate job], you also don't need as many mangers, directors and etc.


But keep in mind, we still need more H1Bs, L1s, O1s, H4 visa holders. We just need them.
YouBet
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AG
71% of the UPS cuts were operational. Meaning drivers.

I'm not attributing all of this to COVID. The other thing going on at UPS, in particular, is that they have only ever raised prices and there is massive churn going on in the delivery space over the last 3 years. UPS has flat out told their customer base that if they aren't a profitable customer then they lose their discounted corporate rates and they don't' want them as a customer. Even very large revenue companies lost their rates. So, part of these cuts reflects lost volume from UPS's own doing.

A ton of companies who have relied on UPS for years have/are moving to regional delivery providers or are trying to cobble together a patchwork national delivery network outside of the UPS and FedEx duopoly simply because they can't afford to pay the duopoly rates for shipping.

It's a profitability game in corporate America right now. The age of revenue growth while ignoring costs is over (for the time being).
Teslag
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Muy said:

There's a Walmart near me with a bunch of drones. It's fun to watch them, but their deliveries are so small I can't imagine this being a sustainable way to get people their groceries.


It's not for full orders. It's a way to get those few items you need in a pinch, or even just a few days worth of things. I've used it, and it's very handy.
Hoyt Ag
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YouBet said:

71% of the UPS cuts were operational. Meaning drivers.

I'm not attributing all of this to COVID. The other thing going on at UPS, in particular, is that they have only ever raised prices and there is massive churn going on in the delivery space over the last 3 years. UPS has flat out told their customer base that if they aren't a profitable customer then they lose their discounted corporate rates and they don't' want them as a customer. Even very large revenue companies lost their rates. So, part of these cuts reflects lost volume from UPS's own doing.

A ton of companies who have relied on UPS for years have/are moving to regional delivery providers or are trying to cobble together a patchwork national delivery network outside of the UPS and FedEx duopoly simply because they can't afford to pay the duopoly rates for shipping.


It's a profitability game in corporate America right now. The age of revenue growth while ignoring costs is over (for the time being).

I can confirm this first hand, as our company was told to pound sand by UPS. My power plants I oversee are in remote areas and getting parts and anything in general delivered is very difficult for us. Fedex will only come out on Wednesdays and that is only if they have a truck 65% full or more. Hot shot crews are making a killing off my facilities right now.
samurai_science
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akm91 said:

AtticusMatlock said:

This is the corporate restructuring that the new CEO has been talking about for a few years. They are consolidating layers of management to flatten the org. Does not have anything to do with AI. They have 350,000 corporate employees and just like a lot of companies they think they overhired during the pandemic at inflated wages.

Corporate jobs all across the US is impacted by AI. I've been instructed to look into ways AI can reduce the number of software engineers in my area. When you don't need as many [insert corporate job], you also don't need as many mangers, directors and etc.


Yet H1B visas are booming
YouBet
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AG
Yep. There you go.
hindsight
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100% agree. And as someone who was recently in the job market - it is freaking brutal. It is the worst I've experienced in a 25+ year career.

Companies have lost their mind in terms of hiring process.

Very common to put candidates thru multi, multi, multi round interview process - only to go silent somewhere along the way.

They have no problem wasting THEIR time and for sure don't give a damn about wasting a candidate's.

Multiple people I know have gone thru a 5 / 6 / 7 / 8 round process (non C-suite roles) only to be told "Well, we're going with an internal candidate" or some other BS excuse.

I take no joy in the the Amazon layoffs and don't understand why anyone would either. I try to say a prayer every day for anyone unemployed or looking for work.

Aggie Jurist
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Working for Amazon corporate is absolutely terrible. I did it for a year while transitioning my career. The interview process was silly - and the day-to-day work there is drafting memos and sitting through meetings defending those memos while those who have zero experience in your field tell you they know better.

My work fighting the IBT was interesting and enjoyable, but the Company was terrible.
Muy
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Teslag said:

Muy said:

There's a Walmart near me with a bunch of drones. It's fun to watch them, but their deliveries are so small I can't imagine this being a sustainable way to get people their groceries.


It's not for full orders. It's a way to get those few items you need in a pinch, or even just a few days worth of things. I've used it, and it's very handy.


Until Palantir turns them into Killer delivery drones
techno-ag
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YouBet said:

71% of the UPS cuts were operational. Meaning drivers.

I'm not attributing all of this to COVID. The other thing going on at UPS, in particular, is that they have only ever raised prices and there is massive churn going on in the delivery space over the last 3 years. UPS has flat out told their customer base that if they aren't a profitable customer then they lose their discounted corporate rates and they don't' want them as a customer. Even very large revenue companies lost their rates. So, part of these cuts reflects lost volume from UPS's own doing.

A ton of companies who have relied on UPS for years have/are moving to regional delivery providers or are trying to cobble together a patchwork national delivery network outside of the UPS and FedEx duopoly simply because they can't afford to pay the duopoly rates for shipping.

It's a profitability game in corporate America right now. The age of revenue growth while ignoring costs is over (for the time being).

UPS also cut way back on Amazon deliveries.
The left cannot kill the Spirit of Charlie Kirk.
infinity ag
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Is this how things were 30 years ago? Or is this cold attitude only recent?
I feel that we brought in a lot of trash from 3rd world countries and now we have become them. We behave like trash too.

infinity ag
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I'd like Trump to call up Amazon and tell him he is canceling all their H1B applications. You shouldn't be laying off so many and hiring H1Bs.

Now Amazon will hire more in India and other countries. At least those people will be THERE not HERE.
deddog
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Congress and yes Trump, are doing nothing while the job market burns.
The job market is brutal.

And in the end, elections are always about the economy.
infinity ag
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deddog said:

Congress and yes Trump, are doing nothing while the job market burns.
The job market is brutal.

And in the end, elections are always about the economy.


1000%.

I voted for Trump all 3 times with economy/jobs as my top reason. He said all the right things. But he isn't doing enough (at least on the surface). I am not happy with his waffling and backing out of the initial 100k order. USA is not the employment agency for India's kids (or anyone else's kids).

I get depressed when I read on Linkedin desperate people posting about them losing their house, and sleeping in their car. This should not be normalized and we should not gaslight them. They are not being lazy.
YouBet
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Beyond the H1B issue which I agree needs to be flat out stopped 100%, what else do we want Congress and Trump to do? Ideally, we don't want the government meddling in the job market because they will f* it up.

The H1B issue is a legitimate one that the government should get involved with since they created the issue in the first place.
infinity ag
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YouBet said:

Beyond the H1B issue which I agree needs to be flat out stopped 100%, what else do we want Congress and Trump to do? Ideally, we don't want the government meddling in the job market because they will f* it up.

The H1B issue is a legitimate one that the government should get involved with since they created the issue in the first place.


I want them to review ALL visas (yes, all) and block the loopholes. Make each visa be used for its real and right intention.

That is it. Will fix most issues.
deddog
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YouBet said:

Beyond the H1B issue which I agree needs to be flat out stopped 100%, what else do we want Congress and Trump to do? Ideally, we don't want the government meddling in the job market because they will f* it up.

The H1B issue is a legitimate one that the government should get involved with since they created the issue in the first place.

1. Gut regulation - corporations and small businesses spend a ridiculous amount of time dealing with government regulations. Worthless, unproductive work.

2. Lower health care costs - current system is unsustainable. It's a killer for job mobility, and its extremely hard for smaller businesses to attract talent because of the prohibitive cost. Absolutely need to disconnect health insurance from jobs. Obamacare had the right public intent, but marxists gonna marxist.

3. Lower taxes on companies that create a higher percentage of jobs here. More jobs overseas? higher taxes. Companies need incentives to create jobs here. And a stick if they try to move a large percentage overseas.


deddog
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infinity ag said:

YouBet said:

Beyond the H1B issue which I agree needs to be flat out stopped 100%, what else do we want Congress and Trump to do? Ideally, we don't want the government meddling in the job market because they will f* it up.

The H1B issue is a legitimate one that the government should get involved with since they created the issue in the first place.


I want them to review ALL visas (yes, all) and block the loopholes. Make each visa be used for its real and right intention.

That is it. Will fix most issues.


No. It won't.
Companies will just move jobs overseas.
samurai_science
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deddog said:

infinity ag said:

YouBet said:

Beyond the H1B issue which I agree needs to be flat out stopped 100%, what else do we want Congress and Trump to do? Ideally, we don't want the government meddling in the job market because they will f* it up.

The H1B issue is a legitimate one that the government should get involved with since they created the issue in the first place.


I want them to review ALL visas (yes, all) and block the loopholes. Make each visa be used for its real and right intention.

That is it. Will fix most issues.


No. It won't.
Companies will just move jobs overseas.

Lets test that theory and find out
Aggie Jurist
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AG
Quote:

No. It won't.
Companies will just move jobs overseas.

Not necessarily. Many companies are finding that India operations aren't as productive as originally expected.
infinity ag
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deddog said:

infinity ag said:

YouBet said:

Beyond the H1B issue which I agree needs to be flat out stopped 100%, what else do we want Congress and Trump to do? Ideally, we don't want the government meddling in the job market because they will f* it up.

The H1B issue is a legitimate one that the government should get involved with since they created the issue in the first place.


I want them to review ALL visas (yes, all) and block the loopholes. Make each visa be used for its real and right intention.

That is it. Will fix most issues.


No. It won't.
Companies will just move jobs overseas.


Then tariff their pants off.
Move all your jobs overseas.. BUT! Pay 50% tariff.
Now let's see who wants to move overseas.

The administration can do wonders if they want to.
No Spin Ag
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AtticusMatlock said:

This is the corporate restructuring that the new CEO has been talking about for a few years. They are consolidating layers of management to flatten the org. Does not have anything to do with AI. They have 350,000 corporate employees and just like a lot of companies they think they overhired during the pandemic at inflated wages.
javajaws
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AG
You'll have to remember that Amazon isn't just a shopping website and delivery company (and perhaps the largest of either of those). They have their hands in many other buckets as well - AWS/cloud software offerings, reseller services, Prime video, Whole Foods, kindle/echo devices, and many more. I hate to link to npr, but this is a good list:

https://www.npr.org/2018/11/13/666274605/how-big-is-amazon
fulshearAg96
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Aggie Jurist said:

Quote:

No. It won't.
Companies will just move jobs overseas.

Not necessarily. Many companies are finding that India operations aren't as productive as originally expected.

It takes a team of 8 in India to do the work of 1 person here
Logos Stick
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infinity ag said:

deddog said:

infinity ag said:

YouBet said:

Beyond the H1B issue which I agree needs to be flat out stopped 100%, what else do we want Congress and Trump to do? Ideally, we don't want the government meddling in the job market because they will f* it up.

The H1B issue is a legitimate one that the government should get involved with since they created the issue in the first place.


I want them to review ALL visas (yes, all) and block the loopholes. Make each visa be used for its real and right intention.

That is it. Will fix most issues.


No. It won't.
Companies will just move jobs overseas.


Then tariff their pants off.
Move all your jobs overseas.. BUT! Pay 50% tariff.
Now let's see who wants to move overseas.

The administration can do wonders if they want to.


A tariff is a tax on imported or exported GOODS. So no, you can't place a tariff on them by definition.

Trump can't legally tax companies because he doesn't like how they choose to allocate labor. The executive branch doesn't have that power.
HalifaxAg
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AG
Learn to plumb!
No Spin Ag
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HalifaxAg said:

Learn to plumb!


In my next life I'm going full on electrician. Screw this college edumication career crap.
Tom Fox
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No Spin Ag said:

HalifaxAg said:

Learn to plumb!


In my next life I'm going full on electrician. Screw this college edumication career crap.


You guys laugh, but if by 40 in whatever field you choose you're not working for yourself and have a crap ton invested in the market you have made a mistake. With the exception of people that can earn insanely high income in the corporate world and be set financially in less than a decade.

I know. I made it. I fixed it by my mid 40s. You would be much better off owning your own plumbing company than a corporate drone for Dell.

Humans were meant to have agency. The absence of agency is why everyone looks to big government to solve their problems.
murphyag
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YouBet said:

Amazon and UPS firings can be attributed to COVID hiring. Not all of it but much of it. We know they hired up big time during COVID. You can go back and peruse the business articles in depth on this.

Amazon achieved 1 million employee headcount during COVID with massive hiring to account for the huge shift towards online living when everyone went home from COVID.

So, a lot of this is right sizing back down which they've been doing over the last few years.

The Covid hiring increases had more to do with the warehouse employees and delivery drivers. Not the corporate and tech guys in Seattle/Bellevue.
G Martin 87
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infinity ag said:

Looks like the real number is 14k.
Saw this on Linkedin.

Quote:

BREAKING NEWS Updated 2 minutes ago
Amazon cutting 14K corporate jobs

By Kara Reinhardt, Editor at LinkedIn News

Amazon is planning to eliminate about 14,000 positions, the company revealed in a blog post Tuesday. In the post, Senior Vice President of People Experience and Technology at Amazon Beth Galetti pointed to artificial intelligence as one driver for the cuts, noting that "it's enabling companies to innovate much faster than ever before." She also said the e-commerce behemoth needs "to be organized more leanly, with fewer layers and more ownership." The layoffs may be the largest corporate ones in Amazon's history, per CNBC., noting that "it's enabling companies to innovate much faster than ever before." She also said the e-commerce behemoth needs "to be organized more leanly, with fewer layers and more ownership." The layoffs may be the largest corporate ones in Amazon's history, per CNBC.


AI is a convenient scapegoat these days.
Yes, it is. Just last week, someone around here claimed that AI was going to force us all to work 100+ hour work weeks.
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