Amazon Announces Major Corporate Layoffs Affecting 30,000 Jobs
Amazon is planning its largest workforce reduction since 2022, with up to 30,000 corporate positions set to be eliminated. The move comes as CEO Andy Jassy intensifies efforts to streamline operations and address bureaucracy within the e-commerce giant.
Key Takeaways
- Amazon to cut up to 30,000 corporate jobs (10% of corporate workforce)
- Layoffs affect HR, devices, services, and operations departments
- Notifications to begin Tuesday following manager training
- Stock rose 1.2% despite layoff announcement
Scope and Impact
The planned layoffs represent approximately 10% of Amazon’s 350,000 corporate employees, though this constitutes a small fraction of the company’s total 1.55 million-strong workforce. The People Experience and Technology (HR) division could see reductions of around 15%, according to earlier reports.
Managers of affected teams received training on Monday to prepare for employee notifications, with email communications scheduled to begin Tuesday morning.
AI-Driven Restructuring
CEO Andy Jassy has been actively working to reduce what he describes as “excess bureaucracy” through managerial role cuts and increased AI automation. The company is leveraging artificial intelligence to automate routine tasks, with Jassy previously warning that AI adoption would likely lead to further job reductions.
Earlier this year, Amazon established an anonymous complaint line to identify inefficiencies, which generated approximately 1,500 responses and led to over 450 process changes.
Market Response and Uncertainty
Despite the significant job cuts, Amazon’s stock showed resilience with a 1.2% increase, closing at $226.80. The exact scope of layoffs remains fluid and may evolve as the company’s financial priorities shift. Amazon is scheduled to report its third-quarter earnings on Thursday, which may provide further context for the restructuring decisions.
