Amazon CEO's new manifesto met with fear and frustration: 'Demoralizing'
Amazon's CEO is cutting out middle management to reduce payroll costs and fund the company's push toward artificial intelligence.
What's happening?
Andy Jassy has been Amazon's CEO for three-and-a-half years, and his changes are starting to make big waves. According to Bloomberg, his newest campaign is leading to layoffs and uncertain times for Amazon employees.
He recently published a manifesto discussing the changes. However, the language was vague and confusing. It mentioned having fewer managers and more contributors. The company is turning to AI and new data centers to replace the laid-off employees.
According to eMarketer, Amazon will spend "most of its estimated $75 billion in capital expenditures" to support Amazon Web Services and AI. This is likely a major reason Jassy is eager to cut payroll.
Workers are scared and frustrated. Per Bloomberg, "Employees in multiple departments describe an uncertain workplace, where old career paths are drying up and managers fear replacement by lower-paid people with less experience."
Even those seeking promotions are burnt out by the changes. One employee said the promotion process was "demoralizing" because it required so many different approvals and could be vetoed at any point.
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Why is Amazon's restructuring strategy important?
These corporate changes will cause massive ripple effects. Of course, Amazon workers are feeling it the most. However, there will be other consequences.
The staggering investment in AI and data centers could mean price hikes for consumers. Streaming, cloud tech, and AI platform costs could go up. These increases could also trickle down to other Amazon products and services, from the new Amazon pharmacy to the cost of books.
Jassy's changes could also hurt the planet. The push for more data and AI servers increases pollution. These servers also require vast amounts of water to stay cool and use excessive energy to run.
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Despite this, Amazon has reaffirmed its commitment to its Climate Pledge. It says it still plans to reach zero emissions by 2040. However, GeekWire reported in January that a large chunk of employees in the company's sustainability organizations were laid off.
Amazon's restructuring stands to hurt its employees as well as Earth.
What's being done about Amazon's troubling changes?
Many Amazon employees are holding their breath to see what happens. Middle managers are likely the most nervous. But everyone is experiencing an uncertain moment.
Since Amazon announced its Climate Pledge in 2019, its contributions to pollution have increased, Wired reported. The implementation of sustainable packaging and electric delivery vehicles have helped. But with these new data centers, zero emissions by 2040 seems like a tall order.
Those unhappy with Jassy's decisions can choose to take their business elsewhere. Amazon's stronghold on consumers is tight, but spending your money somewhere else is the best way to express dissatisfaction. This applies to Amazon and every other large corporation contributing to pollution.
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Amazon CEO's new manifesto met with fear and frustration: 'Demoralizing' first appeared on The Cool Down.
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