Amazon Plans 30,000 Corporate Layoffs in Largest Job Cut Since 2022: AI Productivity and Post-Pandemic Restructuring

Amazon is reportedly preparing to implement significant workforce reductions starting Tuesday, potentially eliminating up to 30,000 corporate positions as the company aims to reduce expenses and address pandemic-era overhiring, according to three individuals with knowledge of the situation.

While this figure represents only a small fraction of Amazon's total workforce of 1.55 million employees, it accounts for nearly 10% of the company's approximately 350,000 corporate staff. This reduction would surpass Amazon's previous major layoff from late 2022, when the company eliminated around 27,000 positions.

When approached for comment, an Amazon representative declined to provide a statement.

Over the past two years, Amazon has been steadily reducing its workforce across various departments, including devices, communications, and podcasting. The upcoming cuts are expected to impact multiple divisions such as People Experience and Technology (PXT, Amazon's human resources department), operations, devices and services, and Amazon Web Services.

Sources indicate that managers of teams affected by the cuts were required to undergo training on Monday to prepare for communicating with staff following email notifications scheduled to begin Tuesday morning.

CEO Andy Jassy has been actively working to reduce what he describes as excessive bureaucracy, particularly by decreasing the number of managers. He established an anonymous feedback channel for identifying inefficiencies, which has generated approximately 1,500 responses and led to over 450 process improvements, as reported earlier this year.

In June, Jassy suggested that increased adoption of artificial intelligence tools would likely result in further job reductions, particularly through automating repetitive and routine tasks.

"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 eMarketer analyst. "Amazon has also been under pressure in the short-term to offset the long-term investments in building out its AI infrastructure."

The complete extent of this round of layoffs remains unclear. Sources familiar with the matter indicated that the numbers could fluctuate as Amazon's financial priorities evolve. Fortune previously reported that the human resources division might face cuts of approximately 15%.

According to two sources, a policy implemented earlier this year requiring employees to return to the office five days per week, one of the strictest in the tech industry, has not generated sufficient voluntary departures. Some employees who are not regularly checking in at corporate offices due to distance or other factors are reportedly being informed they have voluntarily resigned and must leave without severance, creating cost savings for the company.

Layoffs.fyi, which tracks job cuts in the technology sector, estimates that approximately 98,000 positions have been eliminated so far this year across 216 companies, compared to 153,000 for all of 2024.

Amazon Web Services (AWS), the company's most profitable division, reported second-quarter sales of $30.9 billion, representing a 17.5% increase. However, this growth lags behind Microsoft Azure's 39% and Google Cloud's 32% gains during the same period.

Projections indicate AWS will achieve third-quarter sales growth of approximately 18% to $32 billion, slightly below last year's 19% increase. The division is still recovering from a major internet outage last week that disrupted numerous popular online services including Snapchat and Venmo.

Despite these corporate reductions, Amazon appears to be preparing for a robust holiday shopping season, announcing plans to offer 250,000 seasonal positions to support warehouse operations and other needs, matching its hiring targets from the previous two years.

On Friday, Amazon also announced a reorganization within a segment of its PXT unit focused on diversity initiatives, according to a memo reviewed by Reuters. These changes primarily involved internal promotions.

Amazon shares increased 1.2% to $226.97 on Monday, with the company scheduled to announce its third-quarter earnings on Thursday.