Amazon doubles down on AI and continues to cut retail jobs

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Amazon made more job cuts this week, this time affecting its reseller services organization, a company spokesperson confirmed to Business Insider.

The job cuts follow a phased announcement of around 30,000 job cuts in October and January. The company also cut a small number of positions in its robotics division in March.

The scale of this week’s job cuts could not be disclosed, but a spokesperson said the cuts would affect a “small number” of employees.

“We regularly review our organization to ensure we are best positioned to achieve our goals. Following our recent review, we have made the difficult decision to eliminate a relatively small number of roles from our Reseller Services team. We do not take these decisions lightly and remain fully committed to supporting affected employees, including with transitional care, severance benefits and outsourced job placement services,” a spokesperson said in a statement.

The Reseller Services Group works closely with the millions of third-party sellers who sell products on Amazon’s marketplace, assisting with onboarding, logistics, and account support.

The layoffs highlight how Amazon continues to restructure its vast retail organization after Chief Executive Officer Andy Jassy focused on efficiency and cost discipline over the past two years. The company had previously planned large-scale layoffs in response to pandemic-era overexpansion, but the continued cuts suggest Amazon is still fine-tuning headcount levels across multiple businesses.

The job cuts also come as Amazon aggressively ramps up its investment in AI across nearly every department within the company, from retail operations and customer service to advertising and logistics.

As executives increasingly encourage their teams to use AI tools to automate routine tasks and streamline operations, there is growing concern among some employees that automation will replace or reduce their roles. Jassy said AI would allow Amazon to operate more efficiently over time, and last year warned that AI could lead to “retrenchment” of the company’s workforce.

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