Amazon plans to cut around 30,000 corporate jobs, marking the largest layoffs in its history, as part of efforts to reduce costs, streamline operations, and accelerate automation. The company will begin sending notifications via email this week. These layoffs will impact nearly 10% of Amazon’s 350,000 corporate employees, though they represent only a small portion of its total workforce of 1.55 million.
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Amazon is cutting jobs across various business units, including AWS, operations, devices, services, and human resources (PXT). Sources told Reuters that PXT could lose up to 15% of its staff. CEO Andy Jassy is pushing a “lean management” strategy to cut bureaucracy, improve accountability, and use AI for efficiency, leading to process changes and the elimination of middle-management roles. Despite a strict five-day office rule, Amazon did not see the expected voluntary exits, prompting layoffs. Employees who fail to comply with the office policy are being treated as though they “voluntarily quit” without severance.
Amazon Job Cuts Show AI Shift as Big Tech Downsizes
Analysts say Amazon’s layoffs signal the growing impact of AI automation on its corporate structure, replacing routine and back-office roles with machine learning tools. Despite the cuts, Amazon’s stock has remained steady, even inching up, as investors praise the company’s focus on efficiency and margin improvement. The company expects a strong holiday season and has hired 250,000 seasonal workers to meet demand. Amazon’s layoffs reflect a broader trend in Big Tech, with Microsoft, Meta, Google, Salesforce, and Intel downsizing this year due to pandemic-era overhiring and AI-driven productivity gains.