Amazon layoffs to trigger automation-led ripple effect across sectors in India

As global tech, media, and ecommerce companies increasingly embrace AI and automation to streamline operations and reduce workforce costs, recruitment experts in India expect a significant impact across industries.

From Amazon to UPS, the two global giants--one from ecommerce and the other from logistics--announced more than 50,000 job cuts last month. The US-based ecommerce giant attributed its decision to reducing bureaucracy, removing structural layers, and reallocating resources to customers' current and future needs.

"We are convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business," the company said in a blog post.

According to Kamal Karanth, co-founder of Xpheno, a bellwether brand like Amazon adopting new practices often triggers ripple effects across the industry, with other enterprises attempting similar changes in their operations.

Karanth noted that this optimisation drive will push e-commerce and quick commerce players to explore automation for greater efficiency. "Such shifts, when successful, will set new benchmarks and performance parameters that investors will also seek," he added.

However, Shantanu Rooj, founder and CEO, TeamLEase EdTech, cautioned that the sector, which employs nearly 16 million people in India, must invest heavily in reskilling and continuous learning to ensure that human capability grows alongside automation, not under it.

Amazon said it has upskilled 700,000 employees globally--including 425,000 in the US and 275,000 outside the US as of 23 October 2025. The company has also launched Future Ready 2030--a $2.5 billion commitment to expand access to education and skills training to help prepare at least 50 million people for the future of work. Other global companies, including Bank of America, DHL Express, Salesforce, and Accenture, have also said they are working to upskill their workforce using AI.

"Global experience also shows that when organizations invest in upskilling, net employment remains stable or even rises alongside AI adoption," Rooj added.

Experts emphasize that while automation and AI will reshape job functions in India, they are unlikely to erase a significant volume of white-collar jobs, as humans remain essential in most AI models.

"The rise of automation by Amazon and other players will undoubtedly create ripple effects across industries. However, rather than triggering widespread elimination of white-collar jobs, the shift will mostly redefine job functions," said Sonal Arora, Country Manager at GI Group Holding.

According to Karanth, low-complexity roles, largely rule-based, repetitive, and objective in output-face the highest risk of AI-driven replacement. Mid-complexity roles that blend structured tasks with intuitive judgement show strong potential for GenAI and Agentic AI intervention.

Arora noted that professionals with skills such as digital fluency, digital strategy, cybersecurity, AI integration, and data analytics will continue to be in high demand.

In essence, the future hinges on the speed at which learning systems, apprenticeships, and industry partnerships adapt to help workers transition. If this alignment is achieved, automation will not signal the end of opportunity, but rather the rise of a more empowered, tech-augmented workforce.