amazon layoffs: Amazon CEO Andy Jassy in an annual letter sent to the company’s shareholders talked about the tough times in the company’s past and how he is now confident that recent steps to cut costs will help the platform grow. In his letter, which is published on the Amazon website, the executive said some of the changes, such as laying off 27,000 employees, are difficult but will be good for the company in the long run.
He said Amazon took a close look “across the company, business by business” to see whether “the long-term potential (will) of each initiative generate substantial revenue, operating income, free cash flow and returns on invested capital.”
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According to JC, the corporation ended up with a telemedicine service and other experimental ventures. It also halted the expansion of its new stores and reduced the expansion of warehouses. He acknowledged that it is difficult to lay off 27,000 employees in multiple phases, but all these actions will help the company reduce overall costs.
It was the largest mass layoff in Amazon’s history. Still, Jesse thinks Amazon’s best days are ahead. He further said that in order to cut down on expenses, Amazon has had to close several physical stores, businesses, Amazon Fabric and Amazon Care initiatives.
Jesse also told shareholders that Amazon has requested that current employees return to the office because it believes innovation happens when people work together rather than in person. The e-commerce behemoth has invited employees to work from office starting May this year, which is next month. People will have to work from office at least three days a week.
Amazon is interested in AI
The CEO of the company said that a lot of money will be spent on AI tools that have become famous in recent months. The company is building its own Large Language Model (LLM). According to JC, they have been developing their own LLMs for some time and are confident that they will enhance and revolutionize practically every consumer experience. He added that the business will continue to make significant investments in these models across all customer, seller, brand and manufacturer interactions.