Amazon to Cut 30,000 Corporate Jobs Amid AI Expansion and Cost Reduction Efforts

Amazon is preparing to lay off up to 30,000 corporate employees starting Tuesday, marking its largest round of job cuts since 2022. The reduction, which represents nearly 10% of Amazon’s 350,000 corporate workforce, comes as the company seeks to streamline operations and offset overhiring that occurred during the pandemic’s surge in online demand.

According to sources familiar with the matter, the layoffs will affect multiple divisions, including human resources (PXT), operations, devices and services, and Amazon Web Services (AWS). Managers have reportedly undergone training to handle the layoffs, with notification emails set to be sent Tuesday morning. While Amazon declined to comment, the move aligns with CEO Andy Jassy’s efforts to reduce bureaucracy and boost efficiency across teams. Jassy has previously encouraged employees to report inefficiencies, leading to over 450 process improvements based on 1,500 anonymous suggestions.

Industry experts suggest the layoffs are linked to Amazon’s growing use of artificial intelligence to automate tasks. “This latest move signals that Amazon is realizing significant AI-driven productivity gains,” said eMarketer analyst Sky Canaves. The company has been under pressure to balance its heavy AI investments with short-term financial performance.

The cuts also coincide with Amazon’s strict return-to-office policy requiring employees to work on-site five days a week. Those failing to comply—particularly remote workers far from offices—are being deemed to have voluntarily resigned without severance, helping further reduce costs.

Despite workforce reductions, Amazon is hiring 250,000 seasonal employees ahead of the holiday season, consistent with previous years. AWS, Amazon’s most profitable unit, continues to face competition from Microsoft Azure and Google Cloud but is expected to report an 18% sales increase in Q3. Amazon shares rose 1.2% to $226.97 ahead of its quarterly earnings announcement on Thursday.