Amazon Targets 30,000 Job Cuts in Largest Layoff Since 2022

Amazon is preparing to implement its largest wave of corporate layoffs since 2022, with as many as 30,000 positions expected to be eliminated, according to multiple reports citing sources familiar with the company's plans. The cuts, which could begin as early as Tuesday, October 28, represent nearly 10% of Amazon's approximately 350,000-strong corporate workforce.

Scale and Scope of the Layoffs

The planned reductions mark a significant escalation in Amazon's cost-cutting efforts under CEO Andy Jassy. While the company has conducted smaller, targeted layoffs throughout 2025—affecting divisions including consumer devices, podcasting operations, and cloud services—this latest round dwarfs previous efforts and would surpass the approximately 27,000 jobs eliminated between late 2022 and early 2023.

According to Reuters, managers of impacted teams underwent training on Monday to prepare for delivering termination notifications via email starting Tuesday morning. The layoffs are expected to affect multiple divisions across Amazon's core business operations.

HR Division Hit Hardest

Amazon's human resources division, internally known as the People eXperience Technology (PXT) team, appears to be bearing the brunt of the cuts. Fortune reported in mid-October that the PXT division could see reductions of up to 15% of its workforce. With more than 10,000 employees worldwide, this division encompasses recruiting teams, technology staff, and traditional HR functions under senior vice president Beth Galetti.

Sources indicated that other areas within Amazon's consumer business are also likely to be affected, including operations, devices and services, and communications teams. The cuts are being discussed internally through different channels than the company's typical "unregretted attrition" (URA) process, suggesting a more formal restructuring effort.

Jassy's Cost-Cutting Strategy

Since succeeding founder Jeff Bezos as CEO in 2021, Andy Jassy has developed a reputation as a disciplined cost-cutter. In June 2025, he sent a companywide email that served as both an embrace of artificial intelligence and a warning shot to employees. "Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company," Jassy wrote.

Critically, he acknowledged the implications for Amazon's workforce: "We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company."

Reducing Bureaucracy Through AI

Jassy has made reducing organizational complexity a cornerstone of his leadership approach. He established an anonymous complaint system for identifying inefficiencies that has generated approximately 1,500 responses and resulted in over 450 process changes. In November 2024, he announced plans to increase the ratio of individual contributors to managers, targeting what he views as excessive bureaucratic layers.

The CEO specifically noted that AI adoption would likely lead to further job cuts, particularly by automating repetitive and routine tasks. This strategy reflects a broader industry trend as companies seek to leverage generative AI technologies to reduce operating costs while maintaining or improving productivity.

Balancing Cost Cuts With AI Investment

The layoffs come as Amazon continues aggressive investments in artificial intelligence infrastructure. The company has committed to spending upwards of $100 billion on capital expenditures in 2025, primarily focused on building out cloud computing and AI data centers for both internal use and its Amazon Web Services (AWS) enterprise customers.

This dual strategy—simultaneously cutting labor costs while dramatically increasing technology investments—illustrates the transformation sweeping through Big Tech companies. Amazon's approach mirrors similar efforts at Microsoft and other technology giants seeking to position themselves for an AI-driven future.

Market Context and Performance

Amazon's stock performance has been relatively subdued compared to broader market gains. Shares are up approximately 3% year-to-date, trailing the S&P 500's 17% gain over the same period. On Monday, following the Reuters report, Amazon stock rose 1% to $226.52, though it had traded higher earlier in the session before the news broke.

The company is scheduled to report third-quarter earnings on Thursday, October 30, which will provide additional context for these workforce decisions. Investors and analysts will be watching closely for management commentary on operational efficiency, AI investments, and the expected impact of the restructuring.

Broader Industry Implications

Amazon's layoffs are part of a larger recalibration across the technology sector. Following the pandemic-era hiring surge, many tech companies have reversed course, seeking to optimize operations for a post-pandemic economic reality. The difference in 2025 is the explicit connection between workforce reductions and AI implementation.

While Amazon announced plans to hire 250,000 seasonal warehouse and logistics workers for the holiday season—positions largely unaffected by these cuts—the corporate layoffs signal a fundamental shift in how the company views knowledge work and organizational structure.

Employee Impact and Corporate Culture

For affected employees, the layoffs represent a significant disruption, particularly given Amazon's historically strong growth trajectory and reputation as a stable employer. The company has declined to comment on the reports, maintaining its pattern of limited public communication about workforce changes until formal announcements are made.

The timing—coming just before the holiday season and year-end performance reviews—adds additional stress for employees uncertain about their status. Amazon's performance management system, which regularly identifies a percentage of employees for potential exit through the URA process, has long been controversial, but these broader cuts represent a different magnitude of change.

Looking Ahead

As Amazon implements these significant workforce reductions, the company faces the challenge of maintaining operational excellence, employee morale, and innovation while fundamentally reshaping its corporate structure. The success of this strategy will likely depend on whether AI technologies can effectively fill the gaps left by departing employees and whether the remaining workforce can successfully navigate the transition.

For the broader tech industry, Amazon's actions may serve as a bellwether for how other major companies balance human capital with technological transformation. The coming months will reveal whether this aggressive approach to AI-driven workforce optimization becomes the new normal or represents an overcorrection that companies will need to adjust.

Amazon's experience will provide valuable lessons about the practical limits and opportunities of using AI to reshape corporate operations—lessons that will reverberate across industries as companies worldwide grapple with similar questions about the future of work.