Amazon Prepares for Second Wave of Layoffs, Targeting 30,000 Corporate Positions
E-commerce behemoth Amazon is reportedly gearing up for a second round of layoffs this week, with a broader strategy to reduce its corporate workforce by approximately 30,000 employees. According to a Reuters report citing two sources familiar with the matter, this move represents a significant escalation in the company's ongoing restructuring efforts.
Timing and Scale of the Job Cuts
The second round of layoffs is expected to commence as early as Tuesday, 27 January, with the total number of job cuts projected to be roughly equivalent to those implemented last year. In October of the previous year, Amazon eliminated around 14,000 white-collar positions, which accounted for nearly half of the targeted 30,000 reductions. This upcoming phase underscores the company's aggressive approach to streamlining its operations.
Divisions Expected to Be Impacted
Employees across several key divisions are anticipated to be affected by the layoffs. These include Amazon Web Services (AWS), the retail segment, Prime Video, and the People Experience and Technology HR units. However, the full extent of the impact remains uncertain, and Amazon's plans could still undergo changes as the situation evolves.
Reasons Behind the Layoffs
The Seattle-based retail giant initially attributed the first round of job cuts in October to the rise of artificial intelligence software. In an internal letter, the company described this generation of AI as "the most transformative technology we've seen since the Internet," highlighting its role in enabling faster innovation. However, CEO Andy Jassy later provided a different perspective during the company's third-quarter earnings call.
Jassy clarified that the reductions were "not really financially driven and it's not even really AI-driven." Instead, he pointed to cultural factors, explaining that the company had accumulated excessive bureaucracy. "You end up with a lot more people than what you had before, and you end up with a lot more layers," he remarked. Jassy had previously indicated in 2025 that he expected Amazon's corporate workforce to shrink over time due to efficiencies gained from AI adoption.
Broader Industry Trends
Major corporations are increasingly leveraging AI to write code for their software and deploying AI agents to automate routine tasks. This trend is driven by a desire to reduce costs and minimize reliance on human labor. Amazon showcased its latest AI models during its annual AWS cloud computing conference in December, emphasizing its commitment to technological advancement.
Historical Context and Impact
The planned reduction of 30,000 jobs would represent a small fraction of Amazon's total workforce of 1.58 million employees, but it accounts for nearly 10% of the company's corporate staff. Most of Amazon's employees work in fulfilment centres and warehouses. If implemented, this would mark the largest layoff in Amazon's thirty-year history, surpassing the approximately 27,000 jobs cut in 2022.
In October, affected workers were informed that they would remain on the payroll for 90 days, during which they could apply for internal positions or seek employment elsewhere. This grace period is set to expire on Monday, adding urgency to the current situation.
