Amazon is set to lay off as many as 30,000 corporate employees beginning Tuesday, marking its largest workforce reduction since 2022. The move comes as the tech giant continues to restructure operations and adapt to a new era of AI-powered efficiency.
According to a Reuters exclusive report, the planned layoffs represent around 10% of Amazon’s 350,000 corporate workforce, though the figure accounts for only a small fraction of its 1.55 million global employees.
The cuts will reportedly affect several key divisions, including Human Resources (People Experience and Technology, or PXT), Devices and Services, Operations, and Amazon Web Services (AWS).
Streamlining Through AI and Structural Reform
The job reductions are part of CEO Andy Jassy’s campaign to eliminate “excess bureaucracy” and streamline management layers. Over the past year, Jassy has implemented several organisational changes aimed at simplifying decision-making and boosting productivity.
Under his leadership, Amazon introduced an anonymous internal feedback system that generated over 1,500 employee suggestions, leading to 450 process improvements across departments.
However, the deeper catalyst for the cuts is artificial intelligence. Jassy acknowledged earlier this year that AI integration across Amazon’s business units has started to automate manual, repetitive tasks, reducing the need for large corporate teams.
“Amazon is likely realizing enough AI-driven productivity gains within corporate teams to support a substantial reduction in force,”
said Sky Canaves, senior analyst at eMarketer.
Canaves added that the decision aligns with Amazon’s broader strategy to offset rising AI infrastructure costs with operational savings.
Divisions Most Affected
While the layoffs will be spread across divisions, insiders say Human Resources may be the hardest hit, with possible cuts of up to 15%.
Managers overseeing affected teams were briefed on Monday and have received training on how to communicate the layoffs. Email notifications are expected to begin Tuesday morning.
The exact number of affected employees could still shift depending on Amazon’s evolving financial priorities and future AI deployment plans.
Broader Strategy: Efficiency and Compliance
Beyond workforce reductions, Amazon has tightened its return-to-office policy. Employees are now required to work on-site five days a week, one of the strictest mandates in Big Tech.
Those who fail to comply, including remote workers who live far from Amazon offices, are reportedly being classified as having “voluntarily resigned,” a move that allows the company to avoid severance obligations.
This aggressive restructuring mirrors the company’s post-pandemic transition from hyper-expansion to sustainable efficiency, as AI and automation become core to its global operations.
A Sign of the Times
The layoff wave underscores how AI is reshaping white-collar employment across industries. As automation takes on more administrative and operational workloads, major corporations like Amazon are recalibrating their human resources to reflect a leaner, tech-driven structure.
For Amazon, this move signals the next phase of its transformation, one that prioritises AI-driven productivity, cost efficiency, and tighter operational control in an increasingly competitive digital economy.
