*Amazon is preparing to eliminate as many as 30,000 corporate positions as the company seeks to reduce expenses and correct overhiring that occurred during the COVID pandemic.
The job cuts would affect nearly 10% of Amazon’s roughly 350,000 corporate employees, Reuters reports. The layoffs are expected to impact multiple business units, including human resources, operations, devices and services, and Amazon Web Services.
CEO Andy Jassy has been leading a company-wide effort to reduce management layers. Earlier this year, he noted that an anonymous complaint system created to identify inefficiencies generated about 1,500 submissions and led to more than 450 process improvements.
In June, Jassy highlighted that greater use of artificial intelligence could prompt additional workforce reductions as automation replaces repetitive tasks. “As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy said.
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While the total scope of the layoffs remains uncertain, one source said the numbers could shift as financial priorities evolve.
“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.”
Amazon’s strict return-to-office policy — requiring employees to be onsite five days a week — has not produced the expected attrition, two sources said. Some remote workers who failed to return are being told they effectively resigned and are leaving without severance.
Despite the corporate reductions, Amazon expects a busy holiday season. The company plans to hire 250,000 seasonal workers.
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