SAN FRANCISCO (M10News Business Desk) Amazon is preparing to eliminate as many as 30,000 corporate jobs starting Tuesday, in what would be one of the company’s largest workforce reductions since the pandemic, according to people familiar with the plans.
The cuts are aimed at trimming expenses and adjusting for overhiring during the COVID-19 boom, when online demand surged and the company expanded its corporate workforce aggressively.
While the reduction represents a fraction of Amazon’s 1.55 million total staff, it could affect nearly 10% of its corporate employees, who number around 350,000.
AI Productivity Driving Restructuring
Sources say the decision reflects the company’s growing reliance on artificial intelligence tools that automate routine administrative tasks and reduce the need for manual oversight.
Amazon CEO Andy Jassy had hinted in June that AI adoption would likely lead to further restructuring across several divisions.
“This latest move signals that Amazon is realizing enough AI-driven productivity gains to support a substantial reduction in force,” said Sky Canaves, a senior analyst at eMarketer.
Analysts suggest that AI efficiencies while improving Amazon’s operational capacity are also accelerating internal job losses across the technology sector, particularly in corporate and HR functions.
Early reports indicate that the human resources division could be among the hardest hit, with an estimated 15% reduction in staff. However, the full scope of the layoffs remains unclear and could evolve as financial priorities shift.
Workplace Policy and Attrition Challenges
Amazon has also struggled with internal compliance over its return-to-office mandate, which requires corporate employees to work five days a week onsite one of the strictest policies in the tech industry.
Two insiders told M10News that the company’s RTO policy did not result in the expected attrition, prompting management to initiate deeper job cuts.
Employees who fail to meet office attendance requirements are reportedly being classified as voluntarily resigned allowing Amazon to avoid severance costs.
According to Layoffs.fyi, which tracks industry-wide tech layoffs, approximately 98,000 tech jobs have been cut this year across 216 companies. In comparison, 153,000 positions were lost in 2024.
AWS Performance and Future Outlook
The company’s most profitable segment, Amazon Web Services (AWS), continues to show moderate growth but trails its major rivals.
AWS reported $30.9 billion in second-quarter sales, a 17.5% increase, compared with 39% growth for Microsoft’s Azure and 32% for Google Cloud.
Estimates suggest AWS will post around 18% growth in the third quarter, a slight slowdown from last year’s 19%.
The division was also hit by a 15-hour internet outage last week, which disrupted popular platforms including Snapchat and Venmo.
Despite the upcoming layoffs, Amazon remains optimistic about consumer demand heading into the holiday shopping season, maintaining plans to hire 250,000 seasonal workers the same as in previous years.
The company also confirmed a reorganization of its People Experience and Technology (PXT) division, focusing on diversity and leadership reshuffles.
Amazon shares rose 1.2% to $226.97 on Monday, ahead of the company’s third-quarter earnings report due Thursday.
Editing by M10News Business Desk | Contact: business@m10news.com
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