Amazon Set for Major Job Cuts as E-Commerce Giant Faces Workforce Reductions
Mumbai, January 24: Amazon is on the verge of launching a substantial second wave of job eliminations next week, inching closer to its ambitious goal of slashing its corporate workforce by around 30,000 positions.
This impending round of layoffs, anticipated to commence as early as Tuesday, January 27, may mirror the magnitude of the previous round executed in October 2025.
This represents the most considerable workforce contraction in the company’s 30-year existence, eclipsing the loss of 27,000 jobs during the 2022-2023 phase.
According to a Reuters report, these layoffs are solely targeting white-collar employees, accounting for nearly 10% of Amazon’s corporate cadre of 350,000.
While the retail behemoth boasts a global workforce of approximately 1.58 million, the vast majority are situated in fulfilment centres and warehouses, which are currently not under review for cuts.
This latest wave arrives just as a 90-day transition window for employees impacted by the October reductions expires on Monday, during which they were allowed to explore internal opportunities.
Departments Affected by Amazon’s Workforce Reductions
Sources indicate that the imminent job cuts will encompass several key divisions. Personnel in Amazon Web Services (AWS), the retail operations unit, and Prime Video are anticipated to be among those affected.
Moreover, the human resources division—a part of the entity dubbed People Experience and Technology (PXT)—is also under the axe as the corporation strives to streamline its administrative operations.
While the precise number of positions to be eliminated in each department remains fluid, the overarching aim is to fulfill the 30,000-worker cut target first reported in late 2025.
Amazon has yet to issue an official announcement regarding the specifics of next week’s activities, though internal communications suggest that managers have been gearing up for this subsequent wave since the year’s inception.
The Role of AI in Corporate Downsizing
The discourse surrounding these layoffs has evolved since their initial announcement. Back in October, Amazon connected the job cuts to the swift progress of artificial intelligence, deeming it the most groundbreaking innovation since the internet in an internal correspondence.
However, CEO Andy Jassy later elucidated that the main motivator is a commitment to diminish cumbersome bureaucracy and eradicate superfluous management tiers that proliferated during the years of expansive growth.
Notwithstanding this change in narrative, Jassy has conceded that the corporate workforce will likely continue to diminish as AI-infused efficiencies gain prominence.
Businesses are increasingly deploying AI systems to automate mundane tasks and facilitate software coding, thereby lowering the traditional dependency on extensive middle-management teams. Reportedly, these savings are being reinvested into R&D for further automation and generative AI initiatives.
Transformation of Amazon’s Cultured Environment
This ongoing restructuring aligns with a broader “cultural reset,” spearheaded by Jassy, aimed at restoring Amazon’s nimbleness akin to that of a startup.
By flattening the corporate hierarchy and excising redundant supervisory layers, the organization seeks to expedite decision-making processes.
This endeavour coincides with a stringent five-day in-office requirement, one of the strictest return-to-office policies within the tech sector.
Employees affected by this new round of layoffs can expect a 90-day notice period on payroll, similar to the support offered following the October downsizing.
During this duration, they will have access to outplacement services and severance packages as they transition away from the company.
With a report on its fourth-quarter financial performance slated for February 5, these reductions underscore a resolute commitment to leaner operations as the company embarks on the 2026 fiscal year.
Source link: Latestly.com.
