Amazon is preparing to lay off as many as 30,000 corporate employees starting Tuesday as part of a sweeping cost-cutting effort to streamline operations and reduce overhiring from the pandemic boom, Reuters reported, citing three people familiar with the matter.
The planned cuts, which could affect nearly 10% of Amazon’s corporate workforce, mark the e-commerce giant’s largest job reduction since 2022, when about 27,000 positions were eliminated. Amazon declined to comment on the report.
According to Reuters, the layoffs will impact multiple divisions, including People Experience and Technology (PXT), operations, devices and services, and Amazon Web Services (AWS). Managers reportedly received training on Monday to prepare for staff notifications scheduled to begin Tuesday morning.
The move follows CEO Andy Jassy’s ongoing efforts to reduce what he described as excessive bureaucracy within the company. Jassy earlier introduced an anonymous complaint line to identify inefficiencies, which has already prompted hundreds of internal process changes.
In June, Jassy acknowledged that increased automation and the use of artificial intelligence tools were contributing to workforce reductions, particularly for repetitive and administrative roles.
“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 eMarketer analyst Sky Canaves, noting that the company faces short-term pressure to balance its heavy investments in AI infrastructure.
Reuters also reported that Amazon’s push to return staff to the office five days a week did not result in the expected attrition, prompting further cuts. Some employees who failed to report to the office regularly were informed that they had “voluntarily quit” and would not receive severance.
The company’s AWS division remains a key profit center, posting $30.9 billion in second-quarter sales — up 17.5% from last year but below Microsoft’s and Google’s cloud growth rates. Amazon’s stock rose 1.2% to $226.97 on Monday ahead of its third-quarter earnings report set for Thursday.
