Amazon is preparing for significant layoffs that could impact up to 30,000 corporate employees, according to sources close to the company's plans. These reductions are part of a broader strategy to decrease costs, address overhiring during the pandemic, and integrate artificial intelligence technologies.
While this number represents a small portion of Amazon's overall workforce, it would constitute the largest corporate layoff in the company's history. Approximately 10 percent of its estimated 350,000 "white collar" employees, out of a total workforce of 1.55 million, may be affected.
This is not Amazon's first instance of substantial staff reductions. In recent years, the company has implemented multiple rounds of layoffs as it navigates changing profit margins, evolving business priorities, and the global adjustment to post-pandemic economic conditions.
During late 2022 and 2023, Amazon initiated substantial job cuts, laying off approximately 27,000 employees across its corporate divisions in two major phases. These earlier reductions affected various units, including Web Services, advertising, devices, communications, and non-core business ventures.
Earlier in 2025, Amazon also carried out smaller-scale layoffs. In January, the company eliminated dozens of positions within its communications and sustainability departments. More recently, around 100 jobs were cut from its Devices & Services division, impacting roles related to Alexa, Kindle, and other hardware products.
Cumulatively, these smaller reductions and earlier layoff rounds have resulted in tens of thousands of job losses. However, none of these individual events approach the magnitude of the current round of layoffs now in progress.
The lead-up to this current situation has also involved significant cultural and operational changes within Amazon. The company has implemented a more stringent return-to-office policy, mandated relocations for certain employees, and indicated that artificial intelligence will lead to further redundancies. Insiders view these actions as indicative of a more disciplined approach to cost management.
In June, CEO Andy Jassy communicated to employees that as Amazon increasingly deploys generative AI and autonomous agents, certain corporate roles will become obsolete. The implications of this directive are becoming increasingly evident.
Amazon's Strategic Realignment, Cost Pressures, and AI as a Catalyst
The current series of layoffs is a result of multiple converging factors. Firstly, Amazon experienced aggressive expansion during the pandemic years. Increased consumer demand, supply chain complexities, and logistical challenges necessitated significant staffing increases across nearly all functions. As demand normalized and operational inefficiencies mounted, the associated costs became unsustainable.
Secondly, prevailing macroeconomic conditions, including rising interest rates, inflation, and reduced consumer spending, have compressed profit margins across Amazon's retail, cloud, and hardware businesses. The company is not insulated from these broader economic trends.
Thirdly, advancements in AI and automation present both the potential for role replacement and a justification for deeper workforce reductions. Amazon already holds a leading position in cloud infrastructure through AWS, and executives see AI as a critical tool for optimizing internal workflows. In June, Jassy informed employees that he anticipates AI adoption will lead to a reduction in corporate headcount over time.
Consequently, the upcoming layoffs are not solely about cost reduction but also signify a strategic pivot. The company aims to reallocate capital towards AI development, streamline management layers, and eliminate roles that can be automated.
The layoffs are anticipated to affect departments such as human resources, specifically the internal group known as People Experience and Technology (PXT), as well as operations, devices & services, and corporate infrastructure teams. Some projections indicate that up to 15 percent of HR positions could be eliminated.
Reports suggest that managers in the affected departments received training on how to deliver layoff notifications prior to the official announcements being sent out.
For employees, the immediate impact is one of personal uncertainty. Amazon typically provides departing corporate staff with a severance package that includes continued salary payments (often for 60 days), benefits, and a payout calculated based on tenure, typically ranging from one to two weeks of pay per year of service, subject to certain limits.
Some former employees have reported that Amazon has offered voluntary severance packages, allowing individuals to leave earlier in exchange for a fixed payout rather than waiting for involuntary termination. Concerns have also been raised about the practice of "silent sacking," where increased performance pressure, mandatory relocations, or strict return-to-office requirements effectively encourage employees to resign, thereby avoiding severance obligations.
The timing of these layoffs is also noteworthy. Amazon is entering its crucial holiday season, a period when it typically increases hiring for its logistics and fulfillment operations. The announced cuts are specifically targeting corporate roles, with frontline warehouse and delivery staff expected to be less affected.
Nevertheless, the visual impact of these corporate layoffs is significant. Even as Amazon invests heavily in AI and infrastructure, it is simultaneously reducing its corporate workforce. This contrast reinforces a broader trend observed across the technology sector, where growth strategies are increasingly tied to efficiency, automation, and cost discipline.
Amazon's latest wave of layoffs occurs at a time when the tech industry is already experiencing considerable workforce adjustments. Other major technology companies, including Meta, Microsoft, and Alphabet, have each reduced their workforces by thousands of employees over the past few years as they recalibrate expectations in response to macroeconomic pressures and the ongoing AI transition.
For Amazon, these layoffs may represent its most significant workforce reset to date. The company faces the challenge of not only managing the logistical aspects of these cuts but also addressing employee morale, public perception, and the rebuilding of trust with those employees who remain.