Amazon’s mass layoffs aren’t about cutting costs; they signal a shift in how work is organised. AI is taking over tasks, but the real battle is about how companies value people.

Amazon’s latest plan to cut about 14,000 corporate jobs has renewed debate over whether large workforces are becoming redundant in an age increasingly shaped by artificial intelligence (AI) and automation.

The company is not shrinking its business. It is accelerating investment in cloud and AI infrastructure, expanding data centre capacity, and building a USD 10 billion AI-focused campus in North Carolina.

The cuts instead target internal layers of management and coordination roles that once formed the backbone of corporate operations.

According to Sonica Aron, Founder and Managing Partner at Marching Sheep, the shift is less about headcount and more about efficiency.

“Corporate efficiency being prioritised over the size of the workforce is not a new idea. What has changed is the speed at which it is happening, driven by the most transformative wave of technology since the internet,” she said.

She explained that the roles being reduced are often the ones built around repetitive processes and slow administrative steps. Automation and AI tools are rapidly taking over tasks that previously required teams and supervisory layers.

“When Amazon or any large organisation reduces layers of management and streamlines corporate processes, they are primarily restructuring and streamlining to reduce roles with repetitive tasks, bureaucracy, slow, linear steps that human hands and minds used to manage,” Aron said.

BIG WORKFORCES AREN’T DISAPPEARING

But she cautions against assuming that layoffs indicate a demise of the big workforces.

“Consumption is growing and changing, and there will always be a need for more and different products and services. And there will always be a need for people to deliver those in organisations. It is about the right matching of skills, knowledge, application and attitude,” she noted.

Aron has worked closely with organisations undergoing restructuring and cultural shifts. She argued that layoffs today are not simply reactions to financial pressure or advances in AI. They reflect a more complex recalibration.

“The equation between technology, productivity and people is changing,” she said. “Cost, efficiency and agility are being given more weight than tenure or continuity. That may make financial sense, but it can create a vacuum in trust and psychological safety unless handled with transparency and empathy.”

REDEFINING ROLES

As companies redefine their operating models, the shape of work is set to evolve. Aron says the first shift will be in how roles are defined. Work will move away from task-based job descriptions to roles that are flexible and problem-solving in nature. “This is not about doing more with less. It is about doing things differently, with purpose,” she said.

The second shift concerns skills. Technical competence will remain important, but the skills that determine success in modern workplaces are increasingly human-oriented. Aron called these “survival skills” rather than soft skills. Emotional intelligence, adaptability, and the ability to collaborate across diverse teams will determine who thrives.

The third shift is in employment models. Full-time, single-employer careers are no longer the default. Hybrid work, project-based roles and flexible contracts will become more common. But Aron highlighted that this flexibility must not be one-sided. Organisations must still offer belonging, growth opportunities and stability for employees working in newer, non-traditional arrangements.

Aron suggested that the Amazon redundancies are a timely reminder that work itself is changing fundamentally.

“Feeling threatened by obsolescence should motivate us to get out of our comfort zones. Not to discard our old skills, but to build new, relevant skills,” she said. For managers, this period is a test of leadership. “This is a chance to lead with empathy and integrity and to care for teams as they make this transition.”

Ultimately, the future of work is not defined by whether jobs disappear, but by how we value people. “Jobs are already changing. The real question is whether we will change how we value people,” Aron said. “Efficiency without empathy is a short-term win. Workplaces that honour both will thrive not just in numbers, but in spirit.”

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