Amazon has initiated a massive round of layoffs, marking its largest job reduction since 2022, with plans to eliminate around 30,000 corporate positions starting today. The move, aimed at cutting costs and streamlining operations, comes as the company continues to recalibrate following its rapid expansion during the pandemic years. According to Reuters, the layoffs will impact several departments and align with Amazon’s broader goal of simplifying its structure and leveraging automation and AI to improve efficiency.
The process officially begins today, with employees being notified via email. Managers have already received training on how to communicate the news. The job cuts are concentrated within Amazon’s corporate workforce, which accounts for roughly 10% of its 3.5 lakh corporate staff, representing only a small portion of its total 1.5 million global workforce. Despite that, this round surpasses the 27,000 job eliminations of late 2022, making it one of the most significant workforce reductions in the company’s history.
Several major divisions are expected to be affected, including human resources, known internally as the People Experience and Technology (PXT) team, along with operations, devices, and even Amazon Web Services (AWS). Insiders suggest that up to 15% of Amazon’s HR unit could face layoffs. Over the past two years, the company has already executed smaller cuts in its devices, HR, and podcasting teams, but this latest phase is considerably broader in scale.
CEO Andy Jassy has been vocal about his intention to make Amazon leaner and faster since succeeding Jeff Bezos. His focus has been on reducing “unnecessary bureaucracy” and accelerating decision-making. Earlier this year, he emphasized that artificial intelligence could play a bigger role in automating routine tasks, a development that analysts say has started to shape Amazon’s staffing decisions. According to industry experts, AI-driven productivity gains may be enabling Amazon to operate efficiently with fewer employees.
Another factor behind the layoffs is the company’s strict return-to-office policy, which mandates corporate employees to work on-site five days a week — one of the most stringent among major tech firms. While some expected this rule to prompt voluntary resignations, the effect has been limited. Employees failing to comply, particularly those living far from offices, have reportedly been treated as having “resigned without severance pay.”
Despite the ongoing layoffs, Amazon is preparing for a busy holiday season. The company plans to hire 2.5 lakh temporary workers — the same as previous years — to handle festive demand. Meanwhile, AWS remains Amazon’s primary profit driver, though its growth has slightly lagged behind Microsoft Azure and Google Cloud. Investor sentiment appears positive, as Amazon’s shares rose 1.2% on Monday, reflecting optimism about the company’s renewed focus on profitability and operational efficiency ahead of its quarterly earnings report.
