Amazon Announces Major Job Cuts Amidst Structural Reevaluation
Amazon is preparing to eliminate approximately 14,000 corporate positions starting next week, marking a significant development in the company’s employment landscape.
This action represents the second substantial wave of layoffs since October 2025, raising the total job reductions to about 30,000—an unprecedented figure in the e-commerce giant’s 30-year history.
This recent initiative follows an initial reduction of around 14,000 white-collar jobs in October. According to sources familiar with the situation, departments affected by the impending layoffs include Amazon Web Services (AWS), retail operations, Prime Video, and the human resources segment, also referred to internally as People Experience and Technology (PXT).
CEO Refocuses Narrative from AI to Corporate Culture
While the earlier layoffs were often framed within the context of artificial intelligence’s transformative potential, CEO Andy Jassy has since offered a different perspective.
During a third-quarter earnings call, he articulated that the underlying cause for these cuts is not driven by financial constraints or AI advancements, but rather by a need to address pervasive culture-related issues.
Jassy emphasized, “It’s not really financially driven, and it’s not even really AI-driven. It’s culture,” attributing the imminent reshaping of the workforce to excessive bureaucracy and hierarchical complexities.
This contradicts earlier communications where the company painted AI as a catalyst for rapid innovation. Instead, Jassy now portrays these layoffs as a strategic move to streamline management structures in an effort to reclaim Amazon’s nimble, startup-like essence.
Workforce Reduction Contrasts with Robust Business Performance
The forthcoming job cuts signify nearly 10% of Amazon’s corporate workforce, which encompasses approximately 350,000 employees.
However, this reduction accounts for less than 2% of the company’s total workforce of 1.58 million, the majority of whom are engaged in warehouse and fulfillment operations.
In an internal memorandum, Beth Galetti, Amazon’s Senior Vice President of PXT, recognized the apparent contradiction, stating, “Some may ask why we’re reducing roles when the company is performing well.”
She stressed the necessity of maintaining competitiveness through a leaner organizational structure that promotes ownership and reduces managerial tiers.
Employees affected by the initial layoffs were granted a 90-day window to transition to other internal positions or seek new opportunities externally, a period set to conclude soon.
Similar support will be offered during this next wave of layoffs, encompassing severance pay, outplacement services, and extended health insurance benefits.
In a bid to enhance operational efficiency, Jassy has also instituted an anonymous feedback mechanism that has yielded over 1,500 responses, resulting in more than 450 process alterations.
As part of his broader reform initiative, a stringent five-day in-office work policy has been enacted—among the most rigorous in the tech sector—although reports indicate this may not have led to the anticipated voluntary attrition.
Source link: Timesofindia.indiatimes.com.
