Amazon layoffs: E-commerce giant to cut 30,000 jobs as AI and cost-cutting measures take hold

Amazon is preparing to lay off up to 30,000 corporate employees starting Tuesday (October 28), as part of an ongoing effort to reduce costs and correct over hiring during the pandemic’s peak demand, according to reports. While this number represents a small portion of Amazon’s total 1.55 million workforce, it’s nearly 10% of the 350,000 corporate employees. This round of cuts follows the company’s previous elimination of 27,000 roles in late 2022.

The job cuts will span several divisions, including Human Resources (People Experience and Technology), operations, devices, services, and Amazon Web Services (AWS), reports suggest. Managers in affected teams were trained on Monday (October 27) to prepare for notifying employees, who will receive emails starting Tuesday (October 28).

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Why is Amazon laying off its employees?

CEO Andy Jassy’s push to streamline operations includes reducing unnecessary layers of management, driven in part by feedback from an anonymous tip line that has led to numerous process changes. The company’s reliance on AI for automation is also expected to further reduce the need for human labour, particularly in repetitive tasks.

This move signals that Amazon is achieving sufficient productivity gains through AI to justify reducing its workforce. Additionally, pressure to manage short-term expenses and fund long-term AI investments may be fueling the cuts. A program introduced earlier this year requiring employees to return to the office five days a week has also contributed to the layoffs, with some workers being told they voluntarily resigned for not complying.

The tech sector as a whole has seen significant layoffs, with approximately 98,000 job losses in 2024 alone. Amazon’s cloud division, AWS, continues to be a key revenue driver, though it reported slower growth compared to rivals like Microsoft and Google Cloud. In the face of these cuts, Amazon remains optimistic about the holiday season, offering 250,000 seasonal roles and planning a reorganisation within its diversity-focused PXT unit. Despite the job cuts, Amazon's stock rose by 1.2% as it prepares to announce its third-quarter earnings this week.