Amazon is reportedly preparing to initiate layoffs affecting approximately 14,000 corporate employees as early as Tuesday, January 27. This action is part of a larger strategy aimed at cutting a total of 30,000 corporate positions, following an earlier round of layoffs in October that saw 14,000 workers let go. The information, derived from unnamed sources, was reported by Reuters.
The upcoming layoffs are expected to touch upon four major business units within Amazon, which include Amazon Web Services, the retail division, Prime Video, and the People Experience and Technology division—essentially the company’s human resources arm. However, details regarding the complete scope of these layoffs remain unclear, and it’s mentioned that these plans could change at any moment.
Despite the significant number of layoffs, they represent a small fraction of Amazon’s overall workforce of 1.58 million employees, translating to about 10% of its corporate staff. This move follows a substantial reduction of 27,000 jobs the company implemented in 2022.
In October 2022, just before initiating the first round of layoffs, the company signaled plans to eliminate as many as 30,000 corporate jobs. The rationale, cited, was an effort to streamline operations by reducing bureaucracy and management layers within the company. CEO Andy Jassy highlighted this intention in a message directed at employees, emphasizing the need to “operate like the world’s largest startup.” He expressed that a successful implementation could enhance operational efficiency, allow for quicker decision-making, reduce bureaucratic hurdles, and ultimately lead to a better customer experience.
Jassy’s comments from September 2024 underscored the importance of reducing the number of managers to bolster agility within the organization. He posited that these structural changes would empower employees, enhancing their sense of ownership and driving decision-making closer to the operational front lines.
As the company gears up for the next phase of layoffs, anticipation builds around its forthcoming financial reporting for the fourth quarter of 2025, scheduled for release on February 5. The results will likely shed light on how these restructuring efforts are impacting the company’s overall performance during a challenging economic landscape.
