Amazon is preparing for one of the largest corporate workforce reductions in its history, with internal planning suggesting as many as 30,000 positions could be eliminated. The move represents roughly 10 percent of the company’s global corporate staff and reflects a major shift in Amazon’s long-term structure and spending priorities.
The company confirmed an initial round of about 14,000 layoffs, affecting departments including human resources, devices and services, operations, and cloud computing. In an internal memo, executives described the restructuring as a necessary step to “operate with fewer layers and more ownership,” focusing resources on high-growth areas like artificial intelligence, automation, and logistics efficiency.
Amazon’s leadership has been candid about how AI is reshaping the company’s workforce. CEO Andy Jassy has said that new automation tools and generative AI initiatives can replace or streamline certain corporate roles, particularly in administrative and support functions. At the same time, Amazon continues to expand hiring across its fulfillment and warehouse operations, bringing on hundreds of thousands of seasonal and hourly workers for the upcoming holiday season.
This dual trend of reducing office-based roles while investing in technology and frontline operations shows how the company is rebalancing after years of rapid corporate expansion. Many of the teams affected were built up during the pandemic when e-commerce demand surged and internal tech projects multiplied. Now, with growth stabilizing, Amazon is emphasizing leaner management, faster decision-making, and higher returns on its AI and data infrastructure investments.
Employees impacted by the cuts will receive severance pay, health coverage extensions, and career transition support. Managers in affected areas have been instructed to handle layoffs directly and ensure clear communication throughout the process. The restructuring process will continue into early 2026, with additional team evaluations expected in the coming months.
The layoffs follow a series of cost-cutting initiatives across the tech industry as companies reassess their workforce needs in an increasingly AI-driven environment. For Amazon, the reductions are both a financial recalibration and a signal of its next phase, one focused on automation, efficiency, and continued dominance in global logistics and cloud technology.
