Amazon Plans Up to 30,000 Corporate Job Cuts in Major Restructuring
Amazon is preparing to eliminate up to 30,000 corporate positions starting Tuesday, according to a Reuters report citing sources familiar with the matter. This represents the company’s largest workforce reduction since 2022 as it addresses post-pandemic cost pressures.
Key Takeaways
- Up to 30,000 corporate jobs at risk, nearly 10% of corporate workforce
- Cuts expected across HR, devices, services, and operations divisions
- Part of CEO Andy Jassy’s ongoing efficiency drive
- Final numbers may change as financial strategy evolves
Scale of the Layoffs
The planned reductions would affect approximately 10% of Amazon’s 350,000 corporate employees, though this represents only a small portion of its 1.55 million global workforce. If implemented, this would surpass the 27,000 jobs cut beginning in late 2022.
An Amazon spokesperson declined to comment on the report.
Which Departments Are Affected?
The job cuts are expected to impact multiple divisions across the company. Specific areas mentioned include People Experience and Technology (human resources), devices and services, and operations teams. The final selection will depend on shifting financial priorities within the organization.
Amazon has already conducted smaller-scale position eliminations across devices, communications, podcasting and other teams over the past two years.
Preparation and Communication
Managers in affected business units received training on Monday to prepare for notification emails scheduled for distribution Tuesday morning, according to the Reuters sources.
Jassy’s Efficiency Initiative
CEO Andy Jassy has been driving a comprehensive effort to eliminate what he describes as “excess bureaucracy,” including reducing management layers. The company has established an anonymous internal system to identify inefficiencies, which has generated approximately 1,500 submissions and led to more than 450 process changes.
Jassy previously indicated that increased adoption of AI tools would likely lead to additional workforce reductions by automating repetitive tasks.
Financial Context and Market Reaction
The final number of job cuts may change as Amazon’s financial strategy continues to evolve, according to sources. Meanwhile, Amazon shares rose 1.3% to $227.11 near Monday’s close. The e-commerce and cloud giant is scheduled to report its third-quarter earnings on Thursday.
