Amazon Cuts 14,000 Jobs as UPS Announces 48,000 Reductions

UPDATE: Amazon has just confirmed it will cut approximately 14,000 corporate jobs as part of a strategic shift towards artificial intelligence while simultaneously slashing costs. Employees affected by these layoffs will be notified on Tuesday, with most having 90 days to secure new positions within the company.

Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, emphasized in a letter to staff that those unable to find new roles or who choose not to seek them will receive transitional support, including severance pay, outplacement services, and continued health insurance benefits. This cut represents a 4% reduction in Amazon’s corporate workforce, which consists of around 350,000 employees, part of a larger global workforce totaling approximately 1.56 million.

Meanwhile, United Parcel Service (UPS) has also revealed it cut about 48,000 jobs this year as part of its ongoing turnaround efforts. The Atlanta-based company reported third-quarter earnings that exceeded Wall Street’s expectations, posting a profit of $1.31 billion, or $1.55 per share, for the period ending September 30, 2023. This marks a decline from last year’s earnings of $1.99 billion or $1.80 per share.

UPS’s revenue for the quarter totaled $21.42 billion, surpassing analysts’ estimates of $20.84 billion. Following the announcement, UPS shares surged more than 7% in afternoon trading, signaling investor confidence in the company’s recovery strategy.

These significant job cuts at both major companies underscore a broader trend in the corporate sector as organizations adapt to changing market conditions and focus on technological advancements. As the landscape shifts, the human impact of these layoffs will be felt deeply in communities reliant on these jobs.

What happens next? Both companies are expected to continue navigating the challenges posed by economic pressures and changing consumer behaviors. Watch for updates on how these job cuts will reshape the workforce and the broader economic landscape.