Amazon.com Inc (NASDAQ:AMZN) is set to proceed with a second phase of corporate layoffs commencing next week, as part of an ongoing strategy to reduce its global employee base by approximately 30,000 positions. Sources familiar with the situation, speaking anonymously, indicated that this round of reductions might begin as soon as Tuesday.
This prospective layoff wave closely follows the substantial elimination of 14,000 roles last October, marking a concerted effort by the company to streamline its corporate staffing after rapid multi-year expansion. These cuts predominantly affect employees within Amazon's corporate divisions rather than its broader workforce, which largely resides in its extensive fulfillment and warehouse network.
Initially, the workforce reduction announced in October was linked internally to restructuring driven by advancements in artificial intelligence. However, CEO Andy Jassy later clarified during the third-quarter earnings call that the rationale behind this decision was not primarily financial nor AI-related. Instead, Jassy attributed the restructuring to decreasing organizational friction and a desire to return to a more streamlined operational model.
"Over time, the company accumulated more personnel and layers of management than necessary," Jassy explained to analysts, underscoring the need to restore operational efficiency. He emphasized that the reductions are aimed at simplifying the organizational structure rather than cost-cutting alone.
The planned workforce reduction of about 30,000 positions equates to nearly 10% of Amazon's corporate staff but represents a small portion relative to its total global headcount of 1.58 million employees. Most of Amazon's personnel continue to be engaged in its fulfillment centers and logistical operations.
This current downsizing surpasses the company's previous largest layoff, which occurred in 2022 with the elimination of 27,000 jobs. The initiative reflects a broader industry movement toward leveraging technology and restructuring to reduce bureaucratic layers and dependency on human labor within corporate settings.
According to the sources, divisions likely affected by the new cuts include Amazon Web Services (AWS), retail, Prime Video, and human resources, though the scope of impacted areas may evolve. Following the release of the news, Amazon's shares experienced a modest 0.2% increase during after-hours trading.