Key Takeaways
- Amazon plans to eliminate 30,000 corporate jobs, its largest layoff round since 2022
- Nearly 10% of corporate workforce affected across HR, operations, devices, and AWS divisions
- Company simultaneously plans to hire 250,000 seasonal workers for holiday demand
Amazon is preparing to cut approximately 30,000 corporate positions starting Tuesday in a major cost-cutting initiative, according to Reuters. This represents nearly 10% of the company’s roughly 350,000 corporate employees, marking Amazon’s largest workforce reduction since 2022 when 27,000 jobs were eliminated.
Which Divisions Are Affected?
The layoffs will primarily impact corporate teams, including:
- People Experience and Technology (PXT) – Amazon’s HR division
- Operations teams
- Devices and services units
- Amazon Web Services (AWS)
The human resources division may face the deepest cuts, with reports indicating reductions of about 15%.
Communication and Implementation
Managers of affected departments received training on Monday regarding how to communicate the layoff decisions to employees. Affected staff will be notified via email about their job status.
CEO’s Cost-Cutting Strategy
CEO Andy Jassy has been actively working to streamline Amazon’s organizational structure and reduce bureaucratic inefficiencies. Earlier this year, he introduced an anonymous complaint line that generated approximately 1,500 responses and led to more than 450 process improvements.
Jassy had previously warned in June that artificial intelligence tools could lead to additional job reductions by automating routine and repetitive tasks.
“This latest move signals that Amazon is likely realizing enough AI-driven productivity gains within corporate teams to support a substantial reduction in force,” Sky Canaves, an eMarketer analyst, was quoted as saying in the report. “Amazon has also been under pressure in the short-term to offset the long-term investments in building out its AI infrastructure.”
Holiday Hiring Continues
Despite the corporate layoffs, Amazon anticipates strong consumer demand during the upcoming holiday season. The company plans to hire approximately 250,000 seasonal workers to handle increased order volumes.
