In one of its largest corporate restructuring efforts in recent years, Amazon is preparing to lay off up to 30,000 corporate employees, aiming to address overhiring that occurred during the pandemic boom and streamline internal operations.
The move represents around 10% of Amazon’s 350,000 corporate employees, though only a small share of its overall 1.55 million-strong global workforce.
Departments Affected: HR, Devices, and Operations
The layoffs will primarily impact departments such as People Experience and Technology (Amazon’s HR division), Devices and Services, and Operations. Managers from these teams reportedly received special training on Monday to prepare for communicating the job cuts, with email notifications expected to begin Tuesday morning.
The restructuring aligns with Amazon’s ongoing efforts to reduce costs and simplify decision-making within its large corporate structure.
Jassy’s Drive for Efficiency and AI Integration
CEO Andy Jassy has emphasized his mission to cut bureaucracy and make Amazon’s operations more agile. A key component of this plan involves leveraging AI to automate repetitive, manual, and low-value tasks across various departments.
Earlier this year, Jassy launched an anonymous complaint line that encouraged employees to flag inefficiencies within teams. The initiative generated more than 1,500 suggestions, resulting in over 450 process improvements company-wide.
While the use of AI has streamlined certain operations, it has also raised concerns about workforce reductions tied to automation—a trend expected to grow as Amazon continues integrating AI into its business processes.
Stock Reaction and Financial Context
Despite the looming layoffs, Amazon’s stock rose by 1.2%, closing at $226.80 on Monday, suggesting that investors view the cuts as a cost-optimization move ahead of the company’s third-quarter earnings report on Thursday.
Although the exact number of affected employees may shift as priorities evolve, analysts say this move marks a pivotal step in Amazon’s broader post-pandemic realignment—balancing automation, efficiency, and profitability.
