Amazon to cut 30,000 jobs because of AI
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Amazon to cut 30,000 jobs because of AI
Amazon (AMZN.O), opens new tab is planning to cut as many as 30,000 corporate jobs beginning on Tuesday, as the company works to pare expenses and compensate for over-hiring during the peak demand of the pandemic, according to three people familiar with the matter.
The figure represents a small percentage of Amazon’s 1.55 million total employees, but nearly 10% of the company’s roughly 350,000 corporate employees. This would represent the largest job cut at Amazon since around 27,000 jobs were eliminated starting in late 2022.
Based on multiple news reports citing sources familiar with the matter, Amazon is preparing to cut up to 30,000 corporate jobs starting on October 28, 2025. This would be the largest corporate layoff in the company’s history. Amazon has not officially commented on the reports.
Key details of the layoffs
Targeted workforce: The cuts will affect Amazon’s corporate employees, which number around 350,000. It does not include the company’s much larger workforce of warehouse employees.
- Affected departments: The layoffs are expected to impact multiple divisions, including Human Resources, Devices and Services, and Operations.
- Reasoning: The job cuts are reportedly part of CEO Andy Jassy’s ongoing effort to streamline operations and reduce expenses, in part by “compensating for over-hiring” that occurred during the COVID-19 pandemic.
- Role of AI: Increased use of artificial intelligence and automation is also a contributing factor. CEO Andy Jassy has previously indicated that AI would likely lead to a reduction in corporate roles that perform routine tasks.
- Context: These cuts follow previous, smaller layoffs. In 2022 and 2023, Amazon eliminated 27,000 corporate jobs, and smaller reductions occurred throughout 2024.
Impact on the company and the broader industry
- The layoffs amount to a significant reduction—nearly 10%—of Amazon’s corporate workforce.
- The move aligns with a broader trend in the tech industry, where companies like Meta and Alphabet have also cut staff in recent years. These decisions are driven by evolving economic conditions and a strategic shift toward investments in AI.
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