Amazon cuts jobs in communications and sustainability to streamline operations

In recent weeks, Amazon has initiated job cuts in its communications and sustainability units as part of a broader organizational review. This decision follows a significant reduction of over 27,000 employees across the company in 2022 and 2023, as CEO Andy Jassy aims to contain costs and enhance operational efficiency. Drew Herdener, who leads the public relations and corporate responsibility teams, communicated in a note to staff that the organization had grown significantly, leading to roles that were overly specific or added unnecessary levels of management. As a result, the company will cut these positions to improve collaboration and streamline structures within the divisions. Additionally, Herdener indicated that some laid-off employees may be rehired for roles at lower levels or reassigned to different areas within the organization. Amazon aims to provide those affected with financial support, continued benefits, and job-placement assistance. These layoffs reflect not only the company's current restructuring but also an ongoing trend of adjusting staff levels, with smaller rounds of cuts continuing into 2024 and 2025. This strategic move coincides with Amazon's efforts to enhance productivity, strengthen the corporate culture, and bring teams closer to their customers. The organization has already mandated that corporate employees return to the office five days a week and is working on flattening its corporate structure by reducing the number of managers. The company is also realigning its functional hubs, which dictate where teams primarily operate, giving department heads the autonomy to determine the most suitable locations. Furthermore, Amazon has shifted its focus towards renewable energy sources, aiming to power its business operations with renewables by 2025 amidst the layoffs and restructuring. The company is also winding down unprofitable initiatives, including experimental services that were not successful. These comprehensive changes demonstrate Amazon's proactive approach to maintaining a viable and efficient organizational framework amidst economic pressures and growth-related challenges it faced during the height of the COVID-19 pandemic.