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Amazon is preparing to eliminate as many as 30,000 corporate positions, marking one of its largest workforce reductions since the pandemic-era hiring surge. The job cuts, which are expected to begin this week, reflect the company’s continuing efforts to curb costs, streamline management layers, and capitalize on productivity gains from artificial intelligence across its operations.
The layoffs could affect nearly 10 percent of Amazon’s corporate workforce, though they represent a fraction of its total 1.55 million employees worldwide. The move would surpass the scale of the company’s 2022 restructuring, when around 27,000 jobs were eliminated following a slowdown in post-pandemic e-commerce growth.
People familiar with the matter said the cuts will span multiple divisions, including People Experience and Technology (PXT), operations, devices and services, and Amazon Web Services (AWS). Managers in affected teams reportedly received training on Monday to guide conversations with staff, with email notifications set to go out starting Tuesday morning.
CEO Andy Jassy, who has been leading a multiyear efficiency drive, has described his strategy as a push to “remove unnecessary layers of bureaucracy.” Earlier this year, Jassy introduced an anonymous feedback channel that has generated more than 1,500 employee submissions and led to over 450 internal process changes.
The latest layoffs also appear linked to Amazon’s increased use of AI automation in administrative and operational workflows. “This latest move signals that Amazon is likely realizing enough AI-driven productivity gains within corporate teams to support a substantial reduction in force,” said Sky Canaves, principal analyst at eMarketer. Analysts have noted that the company faces short-term investor pressure to balance its massive AI infrastructure spending with near-term cost savings.
The cuts come amid signs of uneven performance across Amazon’s business units. The company’s largest profit engine, Amazon Web Services, reported $30.9 billion in revenue for the second quarter, up 17.5 percent year over year slower than growth at cloud rivals Microsoft Azure and Google Cloud, which expanded 39 percent and 32 percent, respectively. Analysts estimate AWS revenue climbed about 18 percent in the third quarter to roughly $32 billion, suggesting a modest deceleration.
AWS is still recovering from a 15-hour outage last week that disrupted several high-profile online platforms, including Snapchat and Venmo. The incident renewed scrutiny of the reliability of Amazon’s cloud infrastructure, even as the company doubles down on AI investments to strengthen its position against competitors.
The layoffs also coincide with Amazon’s strict return-to-office mandate, which requires most corporate employees to be on-site five days a week. The policy, considered one of the toughest in the technology industry, has not led to the attrition executives anticipated, according to two people familiar with internal discussions. Some employees who have not returned to physical offices are reportedly being classified as having voluntarily resigned, allowing the company to reduce headcount without severance costs.
Despite the cuts, Amazon is preparing for a strong holiday season. The company recently said it plans to hire 250,000 seasonal workers, matching levels from previous years to handle warehouse and logistics operations.
The new round of layoffs follows a reorganization of Amazon’s human-resources unit, including its diversity and inclusion arm, within the PXT division, according to an internal memo. While many of those changes involved promotions and role realignments, they signal broader restructuring ahead as Jassy continues to refocus Amazon around AI-driven efficiency and leaner management.
The layoffs could affect nearly 10 percent of Amazon’s corporate workforce, though they represent a fraction of its total 1.55 million employees worldwide. The move would surpass the scale of the company’s 2022 restructuring, when around 27,000 jobs were eliminated following a slowdown in post-pandemic e-commerce growth.
People familiar with the matter said the cuts will span multiple divisions, including People Experience and Technology (PXT), operations, devices and services, and Amazon Web Services (AWS). Managers in affected teams reportedly received training on Monday to guide conversations with staff, with email notifications set to go out starting Tuesday morning.
CEO Andy Jassy, who has been leading a multiyear efficiency drive, has described his strategy as a push to “remove unnecessary layers of bureaucracy.” Earlier this year, Jassy introduced an anonymous feedback channel that has generated more than 1,500 employee submissions and led to over 450 internal process changes.
The latest layoffs also appear linked to Amazon’s increased use of AI automation in administrative and operational workflows. “This latest move signals that Amazon is likely realizing enough AI-driven productivity gains within corporate teams to support a substantial reduction in force,” said Sky Canaves, principal analyst at eMarketer. Analysts have noted that the company faces short-term investor pressure to balance its massive AI infrastructure spending with near-term cost savings.
The cuts come amid signs of uneven performance across Amazon’s business units. The company’s largest profit engine, Amazon Web Services, reported $30.9 billion in revenue for the second quarter, up 17.5 percent year over year slower than growth at cloud rivals Microsoft Azure and Google Cloud, which expanded 39 percent and 32 percent, respectively. Analysts estimate AWS revenue climbed about 18 percent in the third quarter to roughly $32 billion, suggesting a modest deceleration.
AWS is still recovering from a 15-hour outage last week that disrupted several high-profile online platforms, including Snapchat and Venmo. The incident renewed scrutiny of the reliability of Amazon’s cloud infrastructure, even as the company doubles down on AI investments to strengthen its position against competitors.
The layoffs also coincide with Amazon’s strict return-to-office mandate, which requires most corporate employees to be on-site five days a week. The policy, considered one of the toughest in the technology industry, has not led to the attrition executives anticipated, according to two people familiar with internal discussions. Some employees who have not returned to physical offices are reportedly being classified as having voluntarily resigned, allowing the company to reduce headcount without severance costs.
Despite the cuts, Amazon is preparing for a strong holiday season. The company recently said it plans to hire 250,000 seasonal workers, matching levels from previous years to handle warehouse and logistics operations.
The new round of layoffs follows a reorganization of Amazon’s human-resources unit, including its diversity and inclusion arm, within the PXT division, according to an internal memo. While many of those changes involved promotions and role realignments, they signal broader restructuring ahead as Jassy continues to refocus Amazon around AI-driven efficiency and leaner management.
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