Amazon to lay off 30,000 corporate employees as AI and cost-cutting drive reshape workforce
PTC Web Desk: Amazon is preparing for one of its biggest workforce reductions in years, with plans to cut as many as 30,000 corporate jobs beginning Tuesday. The move is part of the company’s ongoing effort to reduce costs, streamline management and adapt to changes brought about by artificial intelligence.
The job cuts, though a small portion of Amazon’s 1.55 million global employees, will affect nearly 10% of its corporate workforce, which numbers around 3,50,000. This marks Amazon’s largest layoff since late 2022, when it eliminated about 27,000 roles.
According to reports, the upcoming layoffs will impact several departments, including Human Resources (People Experience and Technology or PXT), Operations, Devices and Services, and Amazon Web Services (AWS) — the company’s most profitable division.
Managers from the affected teams were reportedly briefed on Monday on how to communicate the layoffs to staff, with notification emails scheduled to begin Tuesday morning.
Amazon’s CEO Andy Jassy has been leading a company-wide initiative to cut what he calls unnecessary bureaucracy and improve efficiency. Over the past year, Jassy has emphasised the use of AI tools to automate repetitive tasks and improve workflow. He earlier stated that the expansion of AI in daily operations could result in fewer human roles within corporate divisions.
Industry analysts say the new wave of job cuts signals Amazon’s growing reliance on AI-driven productivity. “The company appears to be realising enough efficiency through automation to support a major reduction in its white-collar workforce,” said Sky Canaves, an analyst at eMarketer.
The decision also reflects pressure on Amazon to balance its long-term investments in AI infrastructure with short-term profitability goals.
Over the last two years, Amazon has quietly trimmed smaller numbers of jobs across its devices, communications, and podcasting divisions. But the latest round is far more extensive and suggests a deeper structural shift inside the company.
Reports also suggest that Amazon’s return-to-office mandate, requiring employees to work from the office five days a week, failed to push out as many workers as expected. Now, employees who don’t comply with attendance rules are being told they have voluntarily quit, allowing the company to save on severance costs.
Meanwhile, Amazon Web Services (AWS) has seen slower growth compared to rivals. In the second quarter, AWS posted $30.9 billion in sales, up 17.5%, but trailing Microsoft Azure’s 39% growth and Google Cloud’s 32%.
Despite the layoffs, Amazon remains optimistic about the upcoming holiday season. The company plans to hire 250,000 seasonal workers — the same number as in previous years — to meet high demand in its warehouses and logistics network.
Amazon’s shares rose 1.2% to $226.97 on Monday following reports of the restructuring. The company is set to release its third-quarter earnings report on Thursday, where investors expect further details about its cost-saving plans and AI expansion strategy.
- With inputs from agencies
