Amazon to Cut Up to 30,000 Corporate Jobs Amid Cost-Cutting Measures

Amazon to Cut Up to 30,000 Corporate Jobs Amid Cost-Cutting Measures
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Amazon is set to reduce up to 30,000 corporate positions starting Tuesday as the company seeks to streamline operations and adjust for overstaffing during the pandemic, Reuters reported. The layoffs would affect nearly 10% of Amazon’s 350,000 corporate employees, though they represent a small fraction of the company’s 1.55 million total workforce.

The cuts may span multiple divisions, including human resources, devices and services, operations, and People Experience and Technology, sources said. Managers of impacted teams received training on Monday to communicate with employees ahead of email notifications.

Amazon has been gradually trimming jobs across several divisions over the past two years, following earlier reductions of roughly 27,000 positions starting in late 2022. CEO Andy Jassy has emphasized reducing bureaucracy and streamlining management layers, including using artificial intelligence to automate routine tasks.

Analysts say the AI-driven productivity improvements may have enabled Amazon to execute substantial workforce reductions while maintaining operational efficiency. Amazon continues to anticipate a strong holiday season, planning to hire 250,000 seasonal workers, consistent with prior years.

Its cloud computing division, Amazon Web Services, posted $30.9 billion in second-quarter sales, marking slower growth than competitors Microsoft Azure and Google Cloud. Third-quarter AWS sales are expected to reach approximately $32 billion, following a brief internet outage last week. The company is scheduled to release third-quarter earnings on Thursday.