Amazon is set to initiate another substantial job reduction, marking its largest since 2022, as the company strives to streamline its operations and cut costs. The tech giant is anticipated to lay off approximately 30,000 corporate employees starting today, as it seeks to adjust after the surge in hiring during the pandemic. As reported by Reuters, these layoffs will affect various departments as Amazon works to simplify its organizational structure and enhance its use of automation and artificial intelligence. Managers have been informed and trained to communicate the news, with email notifications expected to start today.
Although corporate employees constitute only about 10% of Amazon’s total workforce—around 350,000 out of 1.5 million globally—the magnitude of this layoff represents a notable change. The last similar layoff occurred in late 2022 when approximately 27,000 jobs were cut across different divisions. The imminent layoffs are expected to impact numerous divisions, including the human resources sector, known internally as the People Experience and Technology (PXT) team, along with operations, devices, and Amazon Web Services (AWS). Reports indicate that the HR department may see reductions of up to 15%. Over the past two years, Amazon has already reduced roles in devices, podcasting, and other sectors, but this latest round appears to be much broader in nature.
Since succeeding Jeff Bezos, CEO Andy Jassy has aimed to transform Amazon into a more efficient and streamlined organization. His strategy focuses on eliminating unnecessary management layers and enhancing decision-making speed. Jassy has also highlighted the importance of AI and automation in optimizing operations and decreasing reliance on large human teams. Industry analysts suggest that Amazon’s increased investment in AI technologies has significantly boosted productivity, allowing the company to maintain operations with fewer employees.
As one analyst remarked, ‘The company seems to be benefiting enough from AI-driven productivity gains to justify a reduction in its corporate workforce.’ Through this extensive restructuring, Amazon is positioning itself for a more agile and cost-efficient future, amidst rising competition and economic challenges in the global tech landscape.