HR in the cross hairs as IMF chief warns we are approaching an AI ‘tsunami’
Amazon is reportedly gearing up for another significant round of corporate layoffs as AI and automation rapidly reshape whitecollar roles – including within HR itself.
The latest cuts, which could start as early as Tuesday, are expected to mirror the scale of around 14,000 office-based roles eliminated in October and form part of a wider plan to trim roughly 30,000 corporate positions. If fully implemented, this would equate to nearly 10% of Amazon’s corporate headcount, although it remains a small fraction of the company’s 1.58 million global employees.
Roles across Amazon Web Services (AWS), the core retail business, Prime Video and human resources are all understood to be in scope, though final numbers and locations have not been confirmed. Amazon has so far declined to comment publicly on the reported restructuring.
AI ‘tsunami’ warning
The news lands just as International Monetary Fund (IMF) managing director Kristalina Georgieva warns that AI is set to hit labour markets in advanced economies “like a tsunami.” In remarks at the World Economic Forum in Davos, she highlighted IMF research suggesting 60% of jobs in developed markets and around 40% of roles globally will be affected by AI in the coming years.
According to Georgieva, roles are likely to be “enhanced, eliminated or transformed” as AI tools spread, with entrylevel and earlycareer positions particularly exposed. Workers whose jobs are augmented by AI tend to see higher earnings and spending power, but those in routine or lowerskilled roles face a greater risk of displacement without targeted support and reskilling.
Amazon’s most recent wave of layoffs in October was initially linked to the rapid deployment of generative AI, with leadership telling employees it saw the technology as the most transformative since the rise of the internet.
Chief executive Andy Jassy later stressed that the restructuring was driven more by organisational culture and excessive management layers than by immediate financial pressure or AI alone. Yet he has also acknowledged that, over time, he expects the corporate workforce to shrink as AI and process redesign deliver efficiency gains.
If Amazon proceeds with the full 30,000role program, it would represent the largest set of layoffs in the company’s history, surpassing the 27,000 jobs shed during 2022’s costcutting cycle.
The timing of the new cuts is also sensitive: for those impacted in the October round, 90day notice periods end on Monday, raising the prospect that a second wave of redundancies might begin almost immediately afterwards.
