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Amazon job cuts update: Real reason why 30,000 workers will be laid off; emails go off Tuesday
Amazon is preparing to lay off up to 30,000 corporate employees starting Tuesday.
Amazon is preparing to lay off up to 30,000 corporate employees starting Tuesday, one of the largest workforce reductions in the company’s history, Reuters reported, citing multiple people familiar with the plans. CNBC reported on Monday that emails will go out on Tuesday.
The layoffs would represent about 10% of Amazon’s corporate workforce, though a small fraction of its total 1.55 million employees. If finalized, the move would surpass the 27,000 job cuts announced between late 2022 and mid-2023.
Those familiar with the decision told Reuters that the reductions could affect multiple divisions, including human resources (People Experience and Technology), operations, and the company’s devices and services arm. Managers from impacted teams reportedly underwent training on Monday to prepare for notifying affected employees once the layoff emails begin rolling out Tuesday morning.
Amazon is yet to comment on the layoffs. The company's stock closed Monday up 1.3% at $227.11. It is set to release its third-quarter earnings on Thursday.
Why Amazon is laying off 30,000 employees
The sweeping cuts are part of CEO Andy Jassy’s broader effort to streamline operations and reduce corporate layers. Since taking over in 2021, Jassy has launched a campaign to eliminate what he described as excessive internal bureaucracy. He even introduced an anonymous feedback line to identify inefficiencies - a system that has led to more than 450 internal process changes so far.
In June, Jassy hinted that artificial intelligence would play a key role in reshaping the company’s workforce. “AI is automating a lot of repetitive and routine tasks,” he said, suggesting that such advancements could lead to further staff reductions. Analysts agree that this round of cuts reflects growing productivity gains powered by AI.
“This latest move signals that Amazon is now realizing enough AI-driven efficiency within its corporate teams to justify major reductions,” said eMarketer analyst Sky Canaves, noting that Amazon is also under pressure to balance large-scale AI investments with short-term profitability.
According to Layoffs.fyi, roughly 98,000 tech jobs have been lost so far in 2025 across more than 200 companies - compared with 153,000 in all of 2024.
Amazon’s most profitable business segment, Amazon Web Services, reported $30.9 billion in sales during the second quarter - a 17.5% rise year-over-year but trailing growth rates posted by Microsoft Azure (39%) and Google Cloud (32%). Analysts estimate AWS revenue climbed to $32 billion in the third quarter, an 18% bump, even as it recovers from a recent 15-hour outage that disrupted major platforms like Snapchat and Venmo.
Despite the cuts, Amazon is bracing for another busy holiday season. The company said it will hire 250,000 seasonal workers - the same number as the past two years - to support warehouse and delivery operations.
(With inputs from Reuters)
