Amazon Set to Trim Workforce: Major Layoffs on the Horizon

Reports are surfacing that Amazon is gearing up for significant layoffs of its corporate employees and this could happen as early as this week. Multiple media channels suggest the retail giant is looking to cut as many as 30,000 jobs as part of budget-slashing initiatives spearheaded by CEO Andy Jassy.

Both the Wall Street Journal and Reuters confirmed this target through anonymous sources close to the situation, while Amazon has chosen to steer clear of commenting when approached by the BBC.

If these layoffs do happen, they would mark one of the largest job reductions we’ve seen in quite some time. The last time Amazon made similar cuts was in 2022 when it released approximately 27,000 employees over a few months.

CNBC and the New York Times have also covered Amazon’s anticipated layoffs, citing sources who are supposedly well-informed about the events. However, specifics on which locations will see these cuts remain unclear.

Should these layoffs move forward, they would constitute about 10% of the company’s corporate workforce—a small slice compared to Amazon’s total headcount of over 1.5 million across offices and fulfillment centers globally.

To give some context, Amazon is said to have around 350,000 corporate employees engaged in powers like management, sales, and executive roles, as per figures released to U.S. authorities last year.

Much like various tech enterprises, Amazon ramped up hiring during the Covid-19 pandemic as it tried to keep up with an explosion in demand for online shopping and digital services.

Moving forward, CEO Jassy has admitted that cutting costs has become a priority as Amazon pours resources into AI technology to enhance operational efficiency. He noted that an uptick in AI tools could result in job reductions since machines may handle numerous routine functions.

“We will require fewer hands doing certain tasks, while more will be needed for different roles,” he remarked in June.