In AI-related moves, companies are stepping up job cuts.
Amazon Message to Employees
This morning, Amazon gave an Update On Our Organization on its corporate blog.
I want to let you know that we’re making additional organizational changes across Amazon that will impact some of our teammates. I recognize this is difficult news, which is why I’m sharing what’s happening and why.
As I shared in October, we’ve been working to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy. While many teams finalized their organizational changes in October, other teams did not complete that work until now.
The reductions we are making today will impact approximately 16,000 roles across Amazon, and we’re again working hard to support everyone whose role is impacted. That starts with offering most US-based employees 90 days to look for a new role internally (timing will vary internationally based on local and country level requirements). Then, for teammates who are unable to find a new role at Amazon or who choose not to look for one, we’ll provide transition support including severance pay, outplacement services, health insurance benefits (as applicable), and more.
Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan. But just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate. That’s never been more important than it is today in a world that’s changing faster than ever.
I’m grateful for how our teams continue to deliver – for customers, for each other, and for the incredible things we’re building together.
Thank you,
Beth
Beth Galetti is Senior Vice President of People Experience and Technology at Amazon.
This news is not unexpected. Amazon workers have been expecting this axe to fall since October, fearing the move.
Amazon to Shut Down All Amazon Go and Amazon Fresh Stores
In other Amazon news, the Wall Street Journal reports Amazon to Shut Down All Amazon Go and Amazon Fresh Stores
Amazon.com is closing all of its Amazon Go and Amazon Fresh physical stores in a shift to focus on its online same-day delivery service and expand its Whole Foods Market business.
The e-commerce giant said Tuesday that its branded stores failed to deliver a distinctive customer experience with an economic model that could be scaled up successfully.
The closures will include 57 Fresh stores and 15 Amazon Go locations, according to an Amazon spokeswoman. The company said some of its shuttered Amazon-branded bricks-and-mortar stores would be converted into Whole Foods stores. It said it would open more than 100 new Whole Foods stores in coming years.
The announcement marks the latest pivot in Amazon’s more than decadelong effort to break into physical retail.
Fresh, which offers a more mass-market selection than upscale Whole Foods, was overhauled in recent years but ultimately failed to win over enough customers with its high-tech shopping carts and cheaper prices.
Recently, Amazon, which acquired Whole Foods for about $13.5 billion in 2017, has been experimenting with expanding mass-market offerings in its stores while preserving the brand’s identity as a purveyor of healthful food. The experiments have robots picking up items such as soda, junk food or detergent from storerooms to deliver to customers looking to shop beyond the aisles of nut milk and organic pasta.
Amazon Go’s convenience stores, which let customers check out electronically without waiting in line, also never resonated with shoppers on a large scale, and the company has trimmed its fleet by more than half since 2023. The company does, however, license its Just Walk Out technology to retailers at more than 360 locations in five countries, including colleges and universities, sports arenas, hospitals and airports.
I never expected Fresh to succeed. Amazon cut its losses early. Try something, then move on when it fails is smart policy.
Pinterest to Lay Off Up to 15% of Workforce in Restructuring
Also consider Pinterest to Lay Off Up to 15% of Workforce in Restructuring
Pinterest (PINS) said it would cut up to about 15% of its workforce, or roughly 700 jobs, as part of a restructuring aimed at pivoting resources toward higher-growth areas such as artificial intelligence.
The social-media platform on Tuesday said the restructuring will help support its transformation initiatives, including reallocating resources to AI-focused roles and teams, prioritizing AI‑powered products, and accelerating the revamp of its sales and go-to-market approach.
Pinterest makes money through advertising on its platform, and the company has been hurt by a recent pullback in spending among larger companies. Advertising pricing declined 24% in the third quarter as U.S. retailers navigated “tariff-related margin pressure,” Chief Financial Officer Julia Donnelly said in November.
Shares, which were recently trading 1% lower in premarket trading, have lost roughly 23% of their value over the past year.
The weakness in ad pricing has prompted the company to turn focus toward AI, as pressure on advertising spending is expected to continue weighing on revenue in the near term. Pinterest is aiming to boost revenue with long-term investment in AI, focused on helping users find and purchase products in the images they pin.
There is no driver for job growth that I can see. Mass layoffs aside, if you have a job you generally keep it.
But if you lose a job it is very hard to find another. I have some new charts on this idea later today or tomorrow.
The Fed meets in a few hours and will not cut rates. Trump will immediately howl.
The press conference, Powell’s statements, and dissents (expect at least one), will provide more information than the opening statement.
This post originated on MishTalk.Com
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