Amazon is reportedly planning to slash as many as 30,000 corporate jobs starting Tuesday, one of its largest layoffs to date. While that’s just a fraction of its massive 1.55 million-strong workforce, it represents nearly 10% of Amazon’s 350,000 corporate employees.
The move comes as part of CEO Andy Jassy’s ongoing mission to cut costs and streamline operations after the overhiring spree during the pandemic boom. According to insiders, the upcoming layoffs could hit multiple divisions — from human resources (People Experience and Technology) to devices, services, and operations.
Managers of affected teams reportedly underwent special training on Monday on how to communicate the news — a signal that notifications are imminent.
Jassy, who has been vocal about tackling “excess bureaucracy,” has pushed for internal efficiencies through an anonymous complaint line, which has already led to 1,500 submissions and over 450 process changes.
Earlier this year, he hinted at what’s now unfolding — saying the rise of artificial intelligence tools could lead to further job cuts by automating routine, repetitive work.
“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, eMarketer analyst. “Amazon has also been under pressure in the short term to offset the long-term investments in building out its AI infrastructure.”
While the exact scope of the cuts could shift with Amazon’s financial priorities, early estimates suggest the HR division alone could face a 15% reduction, according to Fortune.
Amazon’s layoffs also follow a broader trend across tech — Layoffs.fyi reports that nearly 98,000 jobs have been cut so far this year across 216 companies.
Meanwhile, Amazon’s biggest moneymaker, AWS, continues to feel the heat. Its Q2 sales rose 17.5% to $30.9 billion, lagging behind Microsoft Azure’s 39% and Google Cloud’s 32% growth. Analysts expect Q3 AWS sales to hit around $32 billion, signaling a slight slowdown.
Despite the cuts, Amazon is gearing up for another busy holiday season — planning to hire 250,000 seasonal workers, the same as last year.
Amazon shares closed up 1.3% at $227.11 on Monday, ahead of its third-quarter earnings report on Thursday.
