Amazon is preparing to lay off as many as 30,000 corporate employees starting Tuesday, according to sources cited by Reuters. The move is part of a broader effort to cut costs and address overhiring that occurred during the pandemic's surge in demand. While the cuts represent a small fraction of Amazon's total workforce of 1.55 million, they account for nearly 10% of the company's approximately 350,000 corporate staffers—and amount to the largest round of layoffs since 2022, when about 27,000 jobs were cut. Per a source who spoke to CNBC, this round of cuts will be the biggest ever for the company's corporate employees. The layoffs are expected to span multiple divisions, including human resources, devices, services, and operations.
Managers in affected areas were reportedly given training on Monday to prepare for informing staff, with official notifications set to begin Tuesday morning. CEO Andy Jassy has been pushing to streamline company operations, reduce management layers, and cut back on what he describes as excessive bureaucracy. Amazon has introduced an anonymous complaint system to identify inefficiencies, resulting in hundreds of process changes. Jassy has previously indicated that increased use of artificial intelligence is likely to drive further job reductions, as automation replaces repetitive tasks.
The exact number of layoffs could change as Amazon's financial priorities evolve, but reports suggest that the human resources division alone may see cuts of around 15%. Despite the reductions, Amazon is still planning to hire 250,000 seasonal workers for the holiday period, matching previous years.
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