Amazon is set to cut as many as 30,000 corporate positions across multiple divisions, driven by AI automation, post-pandemic overstaffing, and restructuring initiatives. Seasonal hiring continues.
SAN FRANCISCO, Oct 27, 2025 (Narrator News) — Amazon (AMAZON) is reportedly preparing to cut as many as 30,000 corporate positions beginning this week, according to sources familiar with the matter. The planned reductions are part of the e-commerce giant’s ongoing efforts to pare costs and correct for overhiring during the pandemic-fueled surge in demand.
While representing a small percentage of Amazon’s total workforce of 1.55 million, the cuts could affect nearly 10% of its roughly 350,000 corporate employees, making it the largest round of corporate layoffs since late 2022, when the company eliminated about 27,000 positions.
An Amazon spokesperson declined to comment on the reports.
Corporate Cuts Across Divisions
Over the past two years, Amazon has made smaller, targeted layoffs across divisions, including devices, communications, and podcasting. This latest wave, starting Tuesday, is expected to impact multiple corporate areas, including Human Resources (People Experience and Technology, or PXT), operations, devices and services, and Amazon Web Services (AWS).
Managers from impacted teams reportedly received training on Monday to prepare them for delivering news to staff after email notifications go out Tuesday morning.
Amazon CEO Andy Jassy has emphasized reducing bureaucratic layers within the company, particularly by cutting managerial positions and streamlining workflows. Earlier this year, he introduced an anonymous feedback system aimed at identifying inefficiencies, which yielded over 1,500 suggestions and more than 450 process changes.
AI and Automation Driving Workforce Changes
Jassy has repeatedly highlighted the growing role of artificial intelligence in the company’s operations, noting that automation of repetitive and routine tasks would likely lead to further corporate job reductions. Analysts suggest that Amazon’s latest layoffs indicate the company believes it has achieved enough AI-driven productivity gains to support significant workforce trimming.
Sky Canaves, an analyst at eMarketer, said,
“Amazon has also been under pressure to offset long-term investments in building its AI infrastructure. These cuts reflect a calculated approach to efficiency and cost management.”
The scope of the layoffs remains fluid, with the total number of affected employees subject to change as corporate priorities evolve. Reports indicate the human resources division could see reductions as high as 15%.
Return-to-Office Policy and Voluntary Departures
Earlier this year, Amazon implemented one of tech’s strictest return-to-office policies, requiring employees to work in corporate offices five days per week. However, insufficient compliance with this policy reportedly contributed to the scale of the layoffs. Employees living far from offices or failing to meet attendance requirements have been classified as voluntarily leaving and will exit without severance, saving costs for the company.
Tech Industry Layoff Trends
According to Layoffs.fyi, about 98,000 tech jobs have been cut so far this year across 216 companies, following 153,000 layoffs in 2024. Amazon’s latest corporate reductions place it among the largest single-company layoffs in the sector this year, reflecting broader tech industry trends as companies optimize operations post-pandemic.
AWS Performance and Market Context
Amazon’s largest revenue driver, Amazon Web Services (AWS), reported Q2 sales of $30.9 billion, a 17.5% increase, lagging behind competitors Microsoft Azure (39% growth) and Google Cloud (32% growth). Preliminary estimates suggest Q3 AWS revenue will reach approximately $32 billion, slightly below last year’s 19% growth.
The cloud unit also experienced a roughly 15-hour internet outage last week, affecting popular platforms including Snapchat and Venmo, highlighting operational challenges amid rapid expansion.
Seasonal Hiring and Continued Growth
Despite the layoffs, Amazon plans to hire 250,000 seasonal workers for the upcoming holiday season, consistent with the past two years, to staff warehouses and support logistics operations. This reflects the company’s ongoing focus on retail and fulfillment growth, even as it restructures corporate functions.
In addition, Amazon recently reorganized a segment of its PXT unit, primarily focused on diversity initiatives. The changes involved promotions and new role assignments, signaling that while some areas face reductions, others continue to grow and evolve.
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Market Reaction
Following news of the potential layoffs, Amazon shares rose 1.2% to $226.97 on Monday, ahead of the company’s Q3 earnings report scheduled for Thursday. Analysts suggest that investors may be interpreting the restructuring as a proactive step toward cost optimization and long-term efficiency.
Outlook and Implications
Amazon’s corporate job cuts highlight the challenges tech companies face in balancing . post-pandemic growth, AI integration, and operational efficiency. While the company continues to expand its retail and cloud businesses, the latest layoffs reflect a strategic pivot toward streamlining management, reducing bureaucracy, and leveraging technology to maintain competitive advantages.
Employees affected by the reductions will receive communication starting Tuesday, with additional details expected in the coming weeks. Industry watchers will be closely monitoring how Amazon’s workforce reshaping impacts both internal operations and the broader tech job market.
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