LONDON: Amazon.com Inc’s layoffs will now increase to more than 18,000 roles as part of a workforce reduction it previously disclosed, Chief Executive Andy Jassy said in a public staff note on Wednesday.
The layoff decisions, which Amazon will communicate starting Jan. 18, will largely impact the company’s e-commerce and human-resources organizations, he said.
The cuts amount to 6 percent of Amazon’s roughly 300,000-person corporate workforce and represent a swift turn for a retailer that recently doubled its base pay ceiling to compete more aggressively for talent.
Amazon has more than 1.5 million workers including warehouse staff, making it America’s second-largest private employer after Walmart Inc.
Its stock rose 2 percent in after-hours trade.
Jassy said in the note that annual planning “has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years.”
Amazon has braced for likely slower growth as soaring inflation encouraged businesses and consumers to cut back spending and its share price has halved in the past year.
The company began letting staff go in November from its devices division, with a source telling Reuters at the time it was targeting around 10,000 cuts.
Arab News reached out for comment and what would be the impact of the cuts on the MENA region but the company said that “at this point in time there is nothing more to add.”
The tech industry shed more than 150,000 workers in 2022, according to tracking site Layoffs.fyi, a number that’s continuing to grow. Salesforce Inc. said Wednesday it planned to eliminate about 10 percent of staff, which numbered nearly 8,000 as of Oct. 31.
The reversal of Amazon’s fortunes has been stark. It changed from a business deemed essential during the pandemic for delivering goods to locked-down homes, to a company that overbuilt for demand. Its layoffs now surpass the 11,000 cuts announced last year by Facebook-parent Meta Platforms Inc. .
Jassy’s note followed a report in the Wall Street Journal that the reduction would be more than 17,000 jobs. He said Amazon chose to disclose the news before informing affected staff because of a leak.
Amazon still must file certain legal notices about mass layoffs, and it plans to pay severance.
Jassy said, “Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so.”
With agencies
Amazon CEO says job cuts to exceed 18,000 roles
https://arab.news/cf5b7
Amazon CEO says job cuts to exceed 18,000 roles
- Layoffs reflect industry-wide trend where in 2022 more than 150,000 jobs have been lost
UAE outlines approach to AI governance amid regulation debate at World Economic Forum
- Minister of State Maryam Al-Hammadi highlights importance of a robust regulatory framework to complement implementation of AI technology
- Other experts in panel discussion say regulators should address problems as they arise, rather than trying to solve problems that do not yet exist
DUBAI: The UAE has made changes to 90 percent of its laws in the past four years, Maryam Al-Hammadi, minister of state and the secretary-general of the Emirati Cabinet, told the World Economic Forum in Davos on Wednesday.
Speaking during a panel discussion titled “Regulating at the Speed of Code,” she highlighted the importance of having a robust regulatory framework in place to complement the implementation of artificial intelligence technology in the public and private sectors.
The process of this updating and repealing of laws has driven the UAE’s efforts to develop an AI model that can assist in the drafting of legislation, along with collecting feedback from stakeholders on proposed laws and suggesting improvements, she said.
Although AI might be more agile at shaping regulation, “there are some principles that we put in the model that we are developing that we cannot compromise,” Al-Hammadi added. These include rules for human accountability, transparency, privacy and data protection, along with constitutional safeguards and a thorough understanding of the law.
At this stage, “we believe AI can advise but still (the) human is in command,” she said.
Authorities in the UAE are aiming to develop, within a two-year timeline, a shareable model to help other nations learn and benefit from its experiences, Al-Hammadi added.
Argentina’s minister of deregulation and state transformation, Federico Sturzenegger, warned against overregulation at the cost of innovation.
Politicians often react to a “salient event” by overreacting, he said, describing most regulators as “very imaginative of all the terrible things that will happen to people if they’re free.”
He said that “we have to take more risk,” and regulators should wait to address problems as they arise rather than trying to create solutions for problems that do not yet exist.
This sentiment was echoed by Joel Kaplan, Meta’s chief global affairs officer, who said “imaginative policymakers” often focus more on risks and potential harms than on the economic and growth benefits of innovation.
He pointed to Europe as an example of this, arguing that an excessive focus on “all the possible harms” of new technologies has, over time, reduced competitiveness and risks leaving the region behind in what he described as a “new technological revolution.”
