Amazon Slashes 30K Corporate Jobs Amid AI Shift

In a move that signals a major shift in its operational strategy, Amazon is preparing for its largest workforce reduction to date, with up to 30,000 corporate jobs reportedly on the chopping block starting this week. This significant cutback comes as the e-commerce giant seeks to control costs following an era of aggressive hiring during the pandemic and as artificial intelligence begins to fundamentally change how the company functions.

A Historic Workforce Reduction

While 30,000 employees represent a fraction of Amazon’s massive 1.55 million global workforce, this number constitutes nearly 10% of its corporate staff. This planned layoff surpasses the previous record of 27,000 job cuts initiated in late 2022, marking a new chapter in the company’s history of workforce adjustments.

Sources indicate that the affected divisions will likely include human resources, devices and services, and operations. Managers reportedly received instructions on how to deliver the news on Monday, with employee notifications expected to begin Tuesday morning. Amazon itself has not yet officially commented on the impending layoffs.

AI and Efficiency Drive Changes

CEO Andy Jassy has been vocal about his strategy to streamline the company by removing what he deems unnecessary management layers and refining internal processes. His initiative for an anonymous employee feedback channel has already led to over 450 internal changes based on more than 1,500 employee responses.

Jassy has also previously warned about the impact of automation and AI on job losses. “This latest move signals that Amazon is likely realizing enough AI-driven productivity gains within corporate teams to support a substantial reduction in force,” noted Sky Canaves, an analyst at eMarketer. The company is also under pressure to offset significant investments in its AI infrastructure.

Seasonal Hiring Continues

Despite these substantial corporate layoffs, Amazon is still gearing up for the holiday season by planning to hire approximately 250,000 seasonal workers. The company is also set to report its third-quarter earnings this Thursday, which will likely provide further insight into its financial performance and strategic direction.