Key Takeaways
- Amazon plans to cut up to 30,000 corporate jobs starting October 28
- This represents nearly 10% of Amazon’s 350,000 corporate employees
- Layoffs follow CEO Andy Jassy’s focus on AI-driven efficiency and cost-cutting
- HR division (PXT) expected to be heavily affected with 15% cuts
Amazon is reportedly preparing to eliminate up to 30,000 corporate positions beginning Tuesday, October 28, marking the company’s largest workforce reduction since 2022, according to Reuters sources.
Cost-Cutting Strategy After Pandemic Over-hiring
The massive layoffs form part of Amazon’s broader cost-cutting initiative as the e-commerce giant recalibrates following aggressive hiring during the COVID-19 pandemic. While representing only a fraction of Amazon’s 1.55 million global workforce, the cuts affect nearly 10% of its 350,000 corporate employees.
The move signals Amazon’s strategic shift from rapid expansion to sustained profitability amid economic uncertainty and slowing consumer spending.
Largest Layoffs Since 2022
This represents Amazon’s most significant workforce reduction since late 2022, when the company eliminated approximately 27,000 roles. Earlier this month, Fortune reported Amazon plans to cut up to 15% of its human resources staff, with the People eXperience Technology (PXT) team facing substantial impact.
Other divisions within Amazon’s core consumer business are also expected to see job cuts.
Preparation and Communication
Amazon has declined public comment on the planned layoffs despite multiple media inquiries. According to Reuters, managers of affected teams underwent communication training on Monday in preparation for staff notifications scheduled to begin via email on Tuesday morning.
Jassy’s Efficiency Drive and AI Focus
CEO Andy Jassy, who oversaw Amazon’s previous record layoffs in 2022-2023, has built a reputation as a cost-cutter since succeeding Jeff Bezos in 2021. The current restructuring aligns with his emphasis on operational efficiency and AI adoption.
In a June companywide email, Jassy warned employees about impending changes: “We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
He simultaneously encouraged staff to embrace AI capabilities, stating those who adapt would be “well-positioned to have high impact and help us reinvent the company.”
Broader Restructuring Effort
Sources familiar with the situation told Fortune that these cuts are being treated differently within Amazon, indicating a comprehensive restructuring rather than routine performance-based trimming. The company’s focus on “unregretted attrition” targets continues under Jassy’s leadership, but current measures suggest a more fundamental organizational transformation.
