Amazon is preparing for the biggest corporate workforce reduction in its nearly three-decade history, with plans to cut as many as 30,000 jobs starting Tuesday, according to multiple sources familiar with the matter.
This decision marks a significant moment for the e-commerce and cloud computing giant as it seeks to streamline operations, reduce costs, and adapt to the increasing influence of artificial intelligence (AI) on corporate structures.
According to Reuters, the layoffs will affect nearly 10% of Amazon’s corporate staff, which totals around 350,000 out of its global workforce of 1.54 million. The cuts, which will unfold over the coming weeks, will span multiple departments including Amazon Web Services (AWS), operations, devices, services, and the human resources division known as People Experience and Technology (PXT).
Amazon declined to comment on the upcoming layoffs, but sources say that affected employees will begin receiving email notifications starting Tuesday morning.
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Largest Layoffs in Amazon’s History
Amazon’s planned job cuts represent not only the largest in its own history but also one of the biggest corporate layoffs in the global tech sector since 2020. According to Layoffs.fyi, over 200 tech companies have already shed more than 98,000 employees this year alone.
These layoffs follow a previous round of reductions that began in late 2022, when Amazon eliminated approximately 27,000 positions as part of a restructuring effort. Since then, smaller cuts have continued across various teams, including communications, devices, and podcasting.
The latest move demonstrates Amazon’s intensified focus on financial discipline and operational efficiency. CEO Andy Jassy, who took over from Jeff Bezos in 2021, has emphasized flattening Amazon’s corporate hierarchy to “remove layers and reduce bureaucracy.” Managers across departments have reportedly undergone training on how to communicate with staff about the layoffs.
AI and Automation: Driving Forces Behind Job Cuts
AI adoption is emerging as a central factor in Amazon’s restructuring. CEO Andy Jassy previously indicated that the company’s growing use of AI tools would naturally lead to workforce changes. In a memo to staff in June, Jassy wrote, “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”
Industry analysts agree that the integration of generative AI is enabling Amazon to achieve higher productivity across its corporate teams. Sky Canaves, an eMarketer analyst, noted that the latest cuts likely indicate Amazon’s realization of “AI-driven productivity gains within corporate teams that support a substantial reduction in force.”
The company is expected to continue expanding its investments in AI infrastructure, even as it trims its human workforce. The shift mirrors broader trends across the tech industry, with companies such as Microsoft, Meta, Google, Salesforce, and Intel also reducing headcounts while ramping up automation initiatives.
Amazon’s corporate layoffs are expected to eliminate 10% of its office-based workforce, marking one of the biggest cuts at the organization since 2022. (Image: Pexels)
Broader Tech Industry Context
Tech layoffs have accelerated in 2024 as corporations confront rising costs and seek efficiency gains through automation. Microsoft has let go of around 15,000 employees, Meta recently eliminated 600 positions in its AI unit, and Google cut over 100 design-related roles in its cloud division. Salesforce, meanwhile, laid off 4,000 customer support workers citing AI integration as a key driver. Intel tops the list with 22,000 job cuts this year.
The trend reflects a broader recalibration of the tech industry following the pandemic boom. In 2023, nearly 1,200 tech companies cut a combined 260,000 jobs amid inflation and rising interest rates. Analysts now view 2024 as a continuation of that correction, albeit with a sharper focus on AI adoption as the catalyst.
Amazon’s Cost-Cutting Campaign and Bureaucracy Overhaul
The upcoming layoffs are part of a larger cost-cutting strategy initiated by Jassy during the pandemic. Beyond staff reductions, Amazon has been reworking its internal structure to eliminate redundant management roles.
Earlier this year, Jassy introduced an anonymous feedback line to help employees identify inefficiencies. The initiative reportedly received over 1,500 submissions, resulting in 450 process changes. These moves align with his broader goal of simplifying operations and boosting long-term profitability.
Additionally, Amazon’s strict return-to-office policy may have indirectly contributed to workforce reductions. Reports indicate that employees who failed to meet the company’s five-day office attendance requirement were marked as voluntarily resigned — a move that saves Amazon from paying severance in some cases.
AWS Growth and Market Pressure
Despite ongoing cost optimization, Amazon’s largest profit center, Amazon Web Services (AWS), faces mounting competition. AWS generated $30.9 billion in second-quarter revenue, representing a 17.5% year-over-year increase — slower than Microsoft Azure’s 39% and Google Cloud’s 32% growth rates.
Estimates suggest AWS’s third-quarter revenue rose about 18% to $32 billion, continuing the slight deceleration trend. Analysts note that AWS is still recovering from a major 15-hour outage earlier this month, which disrupted popular platforms such as Snapchat and Venmo.
While AWS remains a powerhouse, investors have been urging Amazon to balance its massive AI investments with profitability improvements, a challenge Jassy appears eager to address.
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Holiday Hiring and Future Outlook
Despite the corporate layoffs, Amazon continues to prepare for a robust holiday shopping season. The company recently announced plans to hire 250,000 seasonal warehouse and delivery workers, matching previous years’ figures.
In contrast to the layoffs, Amazon’s diversity-focused division within its PXT unit underwent a small reorganization, promoting several employees to new roles.
Amazon shares rose 1.2% on Monday to $226.97, signaling investor confidence in the company’s restructuring strategy ahead of its third-quarter earnings announcement scheduled for Thursday.
As Amazon enters a new era of AI-enhanced operations, the company faces the dual challenge of maintaining growth while managing the social and organizational impact of large-scale automation.
Jassy’s leadership continues to define Amazon’s evolution: a relentless push toward efficiency, innovation, and technological transformation — but at the cost of thousands of corporate jobs.