Amazon is set to initiate significant layoffs beginning Tuesday, aiming to reduce its workforce by as many as 30,000 corporate jobs. This decision is part of a strategy to cut costs and realign the company following a period of overhiring during the pandemic’s peak demand. While the layoffs represent a fraction of Amazon’s total workforce of 1.55 million, they account for nearly 10% of its approximately 350,000 corporate employees, marking the largest reduction since 27,000 jobs were cut starting in late 2022.
The upcoming layoffs may affect various divisions within the company, including human resources, technology, operations, and devices and services. Managers of impacted teams were instructed to prepare for employee notifications, which will commence via email.
CEO Andy Jassy has been spearheading a movement to eliminate excess bureaucracy within Amazon. This includes decreasing the number of managerial positions and implementing an anonymous feedback line to streamline processes, which has already resulted in over 450 changes based on approximately 1,500 responses. Jassy has also indicated that advancements in artificial intelligence could lead to further job cuts, particularly in roles involving repetitive tasks.
While the exact details of this round of layoffs remain unclear and could change as Amazon reassesses its financial priorities, reports suggest that the human resources division could face cuts of around 15%. Despite this news, Amazon’s stock rose by 1.5% to $227.53 as the company prepares to release its third-quarter earnings on Thursday, reflecting a measured optimism in its financial outlook amidst these changes.