Layoffs to start Tuesday and will affect 10% of its global corporate staff, including HR, according to reports
Amazon is poised to implement the largest corporate workforce reduction in its history, with plans to cut up to 30,000 corporate positions, starting this week. The move, as reported by Reuters, will impact nearly 10% of the company’s global corporate staff.
The cuts come as Amazon seeks to streamline operations and address over hiring that occurred during the pandemic’s e-commerce boom. While the company’s total workforce exceeds 1.5 million, the layoffs will focus on its corporate segment, which numbers around 350,000 employees worldwide. This reduction is expected to surpass previous rounds, including the 27,000 jobs eliminated since late 2022.
Divisions likely to be affected include human resources, devices, services, and operations. Reports indicate that Amazon’s People Experience and Technology unit, which oversees HR, could see a reduction of up to 15%. Managers in impacted areas have received training on communicating these changes, with notifications to employees expected to begin via email.
Automation and AI: Drivers of workforce change
CEO Andy Jassy has made it clear that the company’s restructuring is not just cost-cutting, but also about adapting to new technologies. Amazon has increasingly integrated artificial intelligence and automation into its operations, with Jassy noting that these tools are expected to automate many repetitive tasks and reduce the need for certain roles. In a previous memo to staff, he wrote, “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”
Analysts suggest that these productivity gains from AI are now significant enough to support such a substantial reduction in force. “This latest move signals that Amazon is likely realizing enough AI-driven productivity gains within corporate teams to support a substantial reduction in force,” said one industry analyst.
The cuts reflect a broader trend in the tech sector. According to Layoffs.fyi, nearly 100,000 tech jobs have been lost across more than 200 companies this year alone, with automation and AI cited as key factors.
Looking ahead
Despite the reductions at the corporate level, Amazon plans to hire 250,000 seasonal workers for its warehouses this holiday season, maintaining its position as a major employer.
According to Layoffs.fyi, more than 200 tech companies have laid off approximately 98,000 employees since the start of the year, according to the site, which monitors job cuts in the tech sector. Microsoft has laid off 15,000 people so far this year, while Meta last week eliminated roughly 600 jobs within its artificial intelligence unit. Google cut more than 100 role in its cloud unit earlier this month, while Salesforce CEO Marc Benioff said in September the company laid off 4,000 customer support staffers, pointing to its increasing AI adoption.
