Amazon Set to Cut Up to 30,000 Corporate Jobs as AI Reshapes Workforce
E-commerce giant aims to streamline operations, reduce bureaucracy, and boost AI-driven efficiency amid shifting tech landscape
Amazon is preparing to make one of its largest workforce reductions in years, with plans to eliminate as many as 30,000 corporate positions starting Tuesday, according to multiple sources familiar with the matter.
The cuts, representing nearly 10% of Amazon’s corporate workforce, mark another significant chapter in the company’s efforts to streamline operations and embrace artificial intelligence to enhance efficiency.
While the figure accounts for only a small fraction of Amazon’s total global headcount of 1.55 million employees, it would still be one of the largest corporate layoffs in the company’s history — second only to the 27,000 jobs eliminated during the 2022 restructuring.
The layoffs are expected to affect divisions across human resources, operations, devices, services, and Amazon Web Services (AWS), the company’s powerful cloud computing unit.
The restructuring, insiders say, is part of CEO Andy Jassy’s ongoing campaign to reduce bureaucracy and modernize management.
Jassy has been vocal about the need to make Amazon more agile, efficient, and responsive to technological changes, including the integration of AI to automate routine and repetitive corporate tasks.
Managers within impacted divisions reportedly underwent training on Monday to prepare for the process of notifying affected staff. According to those familiar with the matter, employees will begin receiving official layoff emails starting Tuesday morning.
Amazon declined to comment on the reported cuts, but industry analysts say the move underscores a broader trend in the technology sector — one where companies are increasingly relying on AI-powered productivity gains to manage costs and streamline workflows.
“This latest move signals that Amazon is likely realizing enough AI-driven productivity gains within corporate teams to support a substantial reduction in force,” said Sky Canaves, an analyst at eMarketer.
“The company is also under pressure to offset its massive investments in AI infrastructure in the short term.”
Jassy’s drive for reform is not new. Earlier this year, he implemented an internal feedback system allowing employees to anonymously flag inefficiencies within the organization.
The initiative resulted in over 1,500 employee submissions and led to 450 process changes. The goal, according to Jassy, is to eliminate unnecessary layers of management and speed up decision-making — a critical step as Amazon navigates a rapidly changing retail and tech environment.
The cuts also reflect Amazon’s evolving approach to post-pandemic workforce management. During the height of the COVID-19 crisis, the company hired aggressively to meet soaring e-commerce demand.
However, with consumer habits normalizing and economic pressures mounting, Amazon has been reassessing its corporate structure to better align with future growth goals.
Adding to the internal strain is the company’s strict return-to-office policy, requiring employees to be on-site five days a week — one of the toughest mandates in the tech industry.
Sources indicate that the policy has not achieved the attrition Amazon had hoped for. Some employees who have failed to comply are reportedly being treated as having voluntarily resigned, allowing Amazon to reduce costs without paying severance packages.
The planned cuts come as Amazon continues to rely heavily on its cloud business, AWS, which remains the company’s most profitable segment.
However, AWS has faced slowing growth amid fierce competition from Microsoft Azure and Google Cloud. Amazon’s cloud revenue grew 17.5% in the second quarter, lagging behind Azure’s 39% and Google Cloud’s 32%.
Analysts expect AWS’s third-quarter growth to slow slightly to around 18%.
Despite the restructuring, Amazon remains optimistic about the upcoming holiday season. The company announced plans to hire 250,000 seasonal workers to handle surging online orders — consistent with previous years.
This seasonal hiring drive is expected to help balance the workforce reductions occurring in its corporate divisions.
Meanwhile, Amazon has also begun reorganizing parts of its People Experience and Technology (PXT) division, particularly its diversity initiatives.
An internal memo reviewed by reporters showed that several employees in this unit have been promoted or reassigned to new roles, signaling the company’s commitment to evolving its human resources strategies even amid widespread job cuts.
According to Layoffs.fyi, a website tracking tech industry job losses, nearly 98,000 tech employees have been laid off across 216 companies in 2025 alone.
This figure follows a total of 153,000 cuts in 2024, showing that downsizing remains a dominant trend as the tech sector adjusts to economic shifts and AI adoption.
Amazon’s stock responded modestly to the reports, rising 1.2% to $226.97 on Monday. Investors appear to view the move as a sign of financial discipline and forward-looking adaptation to technological realities.
The company is scheduled to release its third-quarter earnings report on Thursday, which may shed more light on the financial rationale behind these cuts and the expected impact of AI integration across its operations.
As Amazon moves into another transformative phase, the message from leadership is clear: automation and efficiency are the new priorities.
The challenge will be maintaining innovation and morale amid deep structural change — a balance that could define the company’s next decade.
