SEATTLE, Oct 27 (TechGenez) — Amazon.com Inc is set to cut as many as 30,000 corporate jobs beginning on Tuesday, representing nearly 10% of its roughly 350,000 corporate employees and marking the e-commerce giant’s largest workforce reduction since late 2022, three people familiar with the matter said.
The layoffs, affecting divisions including human resources, operations, devices and services, and Amazon Web Services (AWS), stem from efforts to reduce bureaucracy and compensate for overhiring during the COVID-19 pandemic’s peak demand period, the sources said.
CEO Andy Jassy has emphasized streamlining management layers and leveraging artificial intelligence (AI) to automate repetitive tasks, a strategy that could lead to further reductions. The company is training managers on Monday to deliver the news, with email notifications to start Tuesday morning.
An Amazon spokesperson declined to comment. The full scope may evolve based on financial priorities.
Layoff Details
The cuts target corporate roles, a small fraction of Amazon’s total 1.55 million employees but significant for its white-collar workforce. Fortune reported that the human resources division, known as People Experience and Technology (PXT), could see around 15% reductions.
Impacted teams include operations, devices and services, and AWS, Amazon’s cloud computing arm. The sources said the move addresses a lack of natural attrition, despite a return-to-office mandate requiring five days a week in the office.
Amazon has also reorganized a PXT segment focused on diversity initiatives, promoting staff to new roles, according to a company memo.
The layoffs follow an anonymous complaint line that received 1,500 responses, leading to over 450 process changes aimed at cutting red tape.
Company Response
Amazon has been vocal about its cost-cutting drive. Jassy wrote in a July shareholder letter that AI adoption would “likely result in fewer people needed to do the same amount of work.”
The company plans to hire 250,000 seasonal workers for the holiday rush, matching levels from the past two years.
An Amazon spokesperson said the firm is “committed to providing clear communication and support to affected employees.”
Broader Context
The reductions are part of Amazon’s ongoing effort to right-size after pandemic-fueled hiring. In late 2022, it cut around 27,000 jobs, followed by 9,000 more in March 2023.
Layoffs.fyi data shows 98,000 tech jobs lost across 216 companies in 2025 so far, down from 153,000 in 2024.
Amazon’s AWS, its most profitable unit, reported Q2 sales of $30.9 billion, up 17.5% but lagging Microsoft’s Azure (39%) and Google Cloud (32%). Q3 AWS sales are estimated to grow 18% to $32 billion.
A recent 15-hour AWS outage disrupted services like Snapchat and Venmo, highlighting infrastructure pressures.
Market Reaction
Amazon shares rose 1.2% to $226.97 on Monday ahead of Q3 earnings on Thursday. The Nasdaq Composite gained 0.5%.
Analysts at eMarketer’s Sky Canaves said the cuts signal “AI-driven productivity gains in corporate teams, supporting a substantial reduction in force.”
JPMorgan maintained an “overweight” rating, noting cost discipline could boost margins to 10% by 2026.
Challenges
The layoffs could face legal scrutiny under U.S. WARN Act requirements for notice, though Amazon’s scale may mitigate suits.
Employee morale is at risk, with Glassdoor reviews citing “bureaucracy fatigue” amid return-to-office mandates.
AI integration raises ethical questions, including bias in automated hiring tools, per a 2025 MIT study.
Quotes
Jassy, in July: “AI will likely result in fewer people needed to do the same amount of work.”
eMarketer’s Canaves: “This reflects Amazon’s pivot to AI efficiencies in its corporate backbone.”
Broader Industry Trends
- Tech layoffs continue, with 2025’s cuts down 36% from 2024 but still totaling 98,000, per Layoffs.fyi.
- AI is accelerating workforce shifts: McKinsey estimates 45% of work activities could be automated by 2030.
- Amazon’s cost focus mirrors peers: Meta cut 21,000 jobs in 2023; Google eliminated 12,000 in 2024.
- AWS’s growth slowdown to 18% Q3 estimate from 19% last year underscores cloud market saturation.
Outlook
The cuts are expected to conclude by year-end, with Q3 earnings Thursday providing more insight into AI investments. Amazon forecasts 2025 revenue of $638-663 billion, up 10-12%, with operating income of $57-61 billion.
Analysts at Deloitte predict AI could save Amazon $5 billion annually in corporate costs by 2027.As e-commerce evolves, Amazon’s leaner structure positions it for AI dominance, but at the cost of short-term human capital.
