In a stunning move that has sent shockwaves across the global tech industry, Amazon is preparing to lay off as many as 30,000 corporate employees, according to sources familiar with the company’s plans. This marks one of the largest job cuts in Amazon’s history, signaling a major shift as the e-commerce and cloud giant restructures for a new era dominated by artificial intelligence and automation.
What’s Happening
Beginning Tuesday, the layoffs will reportedly impact divisions across human resources (PXT), devices and services, operations, and even the company’s most profitable arm — Amazon Web Services (AWS). The move comes as CEO Andy Jassy seeks to reduce costs, eliminate bureaucratic layers, and streamline operations following years of overhiring during the pandemic boom.
While the 30,000 cuts represent only a small fraction of Amazon’s 1.55 million global workforce, they equate to nearly 10% of its 350,000 corporate staff — a staggering figure that underscores the company’s aggressive restructuring strategy.
Amazon has not officially commented on the reports.
The Reason Behind the Layoffs
Sources indicate that Jassy is driving a company-wide transformation, centered on using AI to replace repetitive and administrative tasks. In his previous statements, Jassy hinted that automation would “significantly boost productivity,” which could eventually reduce the need for thousands of white-collar roles.
To identify inefficiencies, Jassy even launched an anonymous internal hotline for employees to report redundant systems and processes — a move that reportedly generated over 1,500 responses and resulted in 450 organizational changes earlier this year.
“Amazon is realizing enough AI-driven productivity gains to justify a major reduction in workforce,” said Sky Canaves, an analyst at eMarketer. “This is a clear sign that the company is betting heavily on automation to drive its next phase of growth.”
Which Teams Are Affected
The People Experience and Technology (PXT) division — Amazon’s HR department — is expected to see the most significant cuts, potentially losing up to 15% of staff, according to Fortune.
Other divisions reportedly on the chopping block include:
- Amazon Devices & Services – responsible for Alexa and Echo products
- Operations & Logistics – overseeing supply chain and warehouse management
- AWS (Amazon Web Services) – the cloud division that fuels most of Amazon’s profits
Return-to-Office Pressure
Adding to the controversy, some sources suggest that Amazon’s strict five-day return-to-office policy is contributing to the layoffs. Employees who fail to meet in-office attendance requirements — often because they live far from Amazon’s hubs — are reportedly being classified as having “voluntarily resigned”, thus forfeiting severance pay.
A Bigger Trend in Big Tech
The layoffs come amid a wider wave of job cuts across the tech sector. According to Layoffs.fyi, nearly 98,000 tech workers have already lost their jobs this year across 216 companies. For comparison, the total for 2024 was 153,000 — suggesting that 2025 could surpass last year’s toll.
AWS Under Pressure
Amazon’s crown jewel, AWS, has also faced headwinds. Despite earning $30.9 billion in Q2 sales, its growth rate of 17.5% lagged behind competitors like Microsoft Azure (39%) and Google Cloud (32%). A recent 15-hour AWS outage that disrupted major platforms like Snapchat and Venmo has only added to the pressure.
Still, analysts predict AWS will report $32 billion in Q3 revenue, an 18% increase year-over-year.
What’s Next for Amazon
Despite the layoffs, Amazon remains bullish about the upcoming holiday season, announcing 250,000 seasonal job openings to meet surging demand — the same number as last year. Meanwhile, the company also reorganized part of its diversity and inclusion unit within PXT, suggesting further internal reshuffling may be underway.
Market Reaction
Investors appear optimistic. Amazon shares rose 1.2%, closing at $226.97 on Monday, ahead of its Q3 earnings report due Thursday.
As Amazon reshapes itself into a leaner, AI-powered organization, the coming months will determine whether this massive restructuring strengthens its position — or fuels further uncertainty among its workforce.
In other news also read about IBM Uses AI to Fire 8,000; Then Ends Up Hiring Even More: What’s Really Going On?
