Amazon is preparing to lay off around 30,000 corporate employees this week, marking its biggest job reduction since late 2022, when it eliminated about 27,000 positions. The move is part of CEO Andy Jassy’s ongoing effort to streamline operations and counter overhiring during the pandemic-driven boom.
Largest corporate layoff since 2022
The planned layoffs will affect nearly 10% of Amazon’s corporate workforce — roughly 350,000 employees — though it represents a small portion of the company’s overall 1.55 million-strong staff. The job cuts are expected across multiple departments, including human resources (People Experience and Technology), operations, devices and services, and Amazon Web Services (AWS).
Managers in affected teams were trained on Monday to handle the layoff process before email notifications began rolling out Tuesday morning.
Efficiency push and AI automation
The restructuring comes as Jassy pushes to reduce “bureaucracy” and simplify management layers. Amazon has even introduced an anonymous complaint line to flag inefficiencies, reportedly leading to over 450 process changes.
The company’s increased adoption of artificial intelligence tools has accelerated the shift. Jassy previously said AI automation would eliminate repetitive tasks, potentially reducing headcount. Analysts believe Amazon is realizing significant productivity gains through these technologies, supporting its decision to trim staff.
Pressure on AWS and holiday hiring plans
While AWS remains Amazon’s largest profit driver, its recent growth has lagged behind competitors. AWS reported $30.9 billion in second-quarter sales — up 17.5% — compared to 39% for Microsoft Azure and 32% for Google Cloud. Estimates indicate AWS revenue rose to $32 billion in the third quarter, marking a slight slowdown.
Despite the layoffs, Amazon plans to hire 250,000 seasonal workers ahead of the holiday shopping season, maintaining the same level as the previous two years.
Stock reaction and internal reshuffling
Amazon shares rose 1.2% to $226.97 on Monday, just days ahead of its third-quarter earnings announcement. The company also reorganized a segment of its human resources division focused on diversity initiatives, promoting several employees into new roles.