Amazon to Slash 30,000 Corporate Roles as AI Reshapes Workforce
Amazon plans to cut as many as 30,000 corporate jobs starting Tuesday 28th, marking its largest round of layoffs since 2022, Reuters reported, citing three people familiar with the matter. The move comes as the company trims costs and reverses pandemic-era overhiring.
The reductions amount to nearly one in ten of Amazon's corporate workforce, which numbers about 350,000 people worldwide. The company employs roughly 1.55 million workers in total, including warehouse and logistics staff.
Layoffs are expected across several divisions, including human resources (known internally as "People Experience and Technology"), as well as operations, devices, services, and Amazon Web Services. Managers of affected teams underwent training Monday on how to communicate with staff before email notifications begin Tuesday morning, according to the Reuters report.
Chief Executive Andy Jassy has spent the past year focused on cutting bureaucracy and flattening management layers. He previously said that automation and AI would likely eliminate some roles, especially those involving repetitive tasks.
The full scope of this round of layoffs remains uncertain. People familiar with the matter said the final number could change as Amazon's financial priorities evolve. Fortune earlier reported that the human resources division could be reduced by roughly 15 percent.
Amazon's strict return-to-office policy has also failed to produce the attrition management hoped for. Employees who are not reporting to the office regularly, some because they live far from company sites, are being told they have voluntarily quit, saving Amazon severance costs.
Despite the restructuring, Amazon expects another strong holiday season. It plans to hire 250,000 seasonal workers, the same as in the past two years.
Amazon shares rose 1.2 percent to $226.97 on Monday. The company is scheduled to report third-quarter earnings on Thursday.