Amazon plans to lay off approximately 30,000 corporate employees starting this Wednesday, as the company seeks to cut expenses and rectify overstaffing levels incurred during the pandemic’s peak demand. This number accounts for a significant portion of Amazon’s corporate workforce, representing nearly 10% of its 350,000 corporate employees, though it is a smaller fraction of its total workforce of 1.55 million.
This forthcoming reduction marks Amazon’s largest job cut since 2022, when around 27,000 positions were eliminated. The layoffs will span various divisions, including human resources, operations, devices, services, and Amazon Web Services, as the company continues to streamline its processes after past reductions across multiple departments.
Managers of affected teams were instructed to undergo communication training in preparation for email notifications intended to inform employees of the layoffs. Amazon CEO Andy Jassy has actively pursued initiatives aimed at reducing bureaucratic excess and enhancing efficiency within the company. He previously reported the implementation of an anonymous complaint line, which successfully identified inefficiencies that led to over 450 process changes.
As the organization adapts to a changing market landscape, Jassy has indicated that the growing use of artificial intelligence tools is likely to contribute to ongoing job cuts, particularly through the automation of repetitive tasks. Analyst Sky Canaves noted that Amazon’s recent measures reflect a realization of productivity gains from AI within corporate teams, allowing for a substantial workforce reduction.
This period of transformation for Amazon, while challenging for those impacted by layoffs, also encapsulates the company’s strategic response to evolving business needs and technological advancements. Amidst these changes, there remains a sense of optimism that streamlining operations will ultimately position Amazon for long-term growth and resilience in an increasingly competitive environment.