Amazon is reportedly gearing up for substantial layoffs among its corporate workforce, with plans to eliminate as many as 30,000 positions. This move, driven by Chief Executive Andy Jassy, forms part of a broader strategy to trim costs amid changing market conditions. Multiple sources, including the Wall Street Journal and Reuters, have corroborated the figure of potential job cuts.
As of now, Amazon has not issued any comments regarding the layoffs when approached by media outlets. If these cuts are finalized, they would mark one of the largest reductions seen in recent times and would represent Amazon’s most significant downsizing since 2022, when the company laid off approximately 27,000 workers over several months.
Reports from CNBC and the New York Times further support these claims, though the specifics regarding the locations affected by the job cuts remain unconfirmed. Notably, the 30,000 layoffs constitute around 10% of Amazon’s corporate workforce, which numbers about 350,000 employees across various functions, including executive, managerial, and sales roles. However, this would still represent a small percentage of Amazon’s total global workforce of over 1.5 million, which includes employees in warehouses and other settings.
The recent proposed layoffs reflect a broader trend within the tech industry, where many companies expanded hiring aggressively during the COVID-19 pandemic to accommodate heightened demand for online shopping and digital services. As markets continue to evolve, Jassy has emphasized a renewed focus on cost-cutting and efficiency improvements, particularly through significant investments in artificial intelligence (AI).
In a statement made in June, Jassy indicated that increased automation through AI could eventually lead to a reduction in workforce requirements for certain tasks. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” he mentioned, highlighting a shift in workforce dynamics as technology continues to advance.
