Amazon layoff: Company to fire up to 30,000 corporate jobs in its biggest layoff since 2022 amid AI overhaul and bureaucracy crackdown

Amazon is preparing to lay off up to 30,000 corporate employees, aiming to streamline operations and address pandemic-era overhiring. This significant reduction, impacting departments like HR and devices, is part of CEO Andy Jassy's strategy to cu...

Reuters
Amazon
Amazon is set to eliminate as many as 30,000 corporate positions, as part of a strategic move to streamline operations and address overhiring during the pandemic's peak demand.

This significant reduction represents approximately 10 percent of Amazon's 350,000 corporate employees, though it constitutes a small fraction of the company's total workforce of 1.55 million.

The layoffs are expected to affect various departments, including People Experience and Technology (HR), devices and services, and operations. Managers of impacted teams underwent training on Monday to prepare for notifying affected employees, who will receive email notifications starting Tuesday morning.


CEO Andy Jassy has been actively working to reduce what he describes as an excess of bureaucracy within the company. This initiative includes cutting managerial roles and leveraging artificial intelligence to automate routine tasks. Jassy has previously mentioned that the increased use of AI tools would likely lead to further job cuts, particularly in automating repetitive and routine tasks.

Earlier this year, he set up an anonymous complaint line to flag inefficiencies, which has generated around 1,500 responses and led to more than 450 process changes.

The scope of this round of job cuts remains unclear, and the number may change over time as Amazon's financial priorities shift. Earlier reports indicated that the human resources division could face a reduction of approximately 15 percent.
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According to CNBC website, despite the impending layoffs, Amazon's stock saw a 1.2 percent increase, closing at $226.80. The company is scheduled to report its third-quarter earnings on Thursday./
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