Amazon is preparing for one of its largest job cuts since 2022, with plans to remove up to 30,000 corporate positions, per Reuters. This represents nearly 10% of its total corporate workforce of around 350,000 employees.
Why Amazon is Cutting Jobs
The layoffs are part of a broader cost-cutting strategy as the company adjusts to a slower economy and addresses overhiring from the pandemic era. During COVID-19, online shopping surged, leading to rapid staff expansion across departments.
According to reports, the reductions will affect multiple divisions, including human resources, devices and services, and operations. Affected employees are expected to receive notifications via email soon.
AI and Automation to Replace Routine Tasks
CEO Andy Jassy has emphasized using artificial intelligence (AI) tools to increase efficiency and reduce organizational bureaucracy. Amazon expects AI to take over several routine tasks, leading to further role reductions in the coming years.
Beyond corporate roles, Amazon is also planning to replace up to 600,000 warehouse jobs with robots by 2027. The company aims for 75% automation across 40 new robotic warehouses, potentially saving between $2 billion and $4 billion annually.
Seasonal Hiring Continues
Despite the job cuts, Amazon will still hire around 250,000 seasonal workers during the holiday shopping period, similar to previous years. These positions are temporary and primarily focused on warehouse and delivery operations.
Analyst View on Amazon’s Future
Analyst Brian Nowak from Morgan Stanley maintained an “Overweight” rating on Amazon’s stock, with a $300 price target. He expects AI-driven growth in Amazon’s retail and cloud computing (AWS) segments to offset short-term job losses.
Key Takeaways
- Amazon to cut up to 30,000 corporate jobs (10% of staff).
- Layoffs driven by cost-cutting and pandemic overhiring.
- AI automation to replace 600,000 warehouse roles by 2027.
- Company aims to save $2–$4 billion annually with 75% automation.
- Amazon still hiring 250,000 seasonal workers for 2025 holidays.
Conclusion
Amazon’s restructuring marks a shift toward an AI-first, automation-driven future. While the layoffs may cause short-term disruption, the company believes technology will make its global operations more efficient and profitable by 2027.
Update: Amazon Plans Major Corporate Layoffs
Amazon.com Inc. will cut around 14,000 corporate jobs as part of a major restructuring effort. Beth Galetti, Senior VP of People Experience and Technology, said the move is meant to reduce bureaucracy, remove unnecessary management layers, and refocus resources on key business areas and customer needs. According to Reuters, total job cuts could reach up to 30,000. The decision follows CEO Andy Jassy’s push for tighter operations and increased efficiency, with many open roles in logistics and advertising left unfilled over the summer.
Update: Amazon CEO Says 14,000 Job Cuts Aim to Reshape Company Culture
Amazon CEO Andy Jassy said the company’s decision to cut 14,000 jobs was driven by a need to realign its internal culture, not by cost-cutting or AI-related reasons. He explained that Amazon’s rapid expansion had created too many management layers, slowing decisions and weakening employee ownership.
The layoffs, announced on October 28, are Amazon’s largest since 2022, when 27,000 roles were eliminated. Affected employees were notified early in the morning via text messages and had their building access revoked. Jassy said the move aims to make Amazon more agile and efficient amid an AI-driven transformation, following a broader trend among Big Tech firms like Google and Microsoft to streamline operations.
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