Amazon, the world’s largest e-commerce and technology company, is preparing to cut 30,000 corporate positions—nearly 10% of its professional workforce—in what will become one of the biggest corporate restructurings in its history. The decision, reported by Reuters and confirmed by multiple sources, underscores the company’s continuing effort to control costs and reshape its workforce in response to a rapidly changing business and technological environment.
Massive Workforce Reduction Begins Tuesday
According to Reuters, the job cuts will begin on Tuesday and are aimed at trimming expenses after extensive hiring during the pandemic, when global demand for online retail soared. The reductions will affect several divisions across the company, including human resources, devices and services, and operations. Managers in affected teams reportedly underwent training on Monday to prepare them for communicating the layoffs to employees once official notifications are sent via email.
“Managers of impacted teams were asked to undergo training on Monday on how to communicate with staff following notifications that will start going out via email tomorrow morning.”
This marks the largest workforce reduction at Amazon since late 2022, when about 27,000 jobs were cut across multiple business units. Currently, Amazon employs around 1.15 million people globally, including approximately 350,000 corporate staff members.
Pandemic Overhiring And Cost Control
The decision reflects Amazon’s continued attempts to correct its post-pandemic workforce size. During the height of global lockdowns, the company expanded its employee base to meet surging e-commerce demand. As market conditions stabilised, Amazon has faced mounting pressure to streamline operations and reduce overheads, particularly in slower-growing segments.
“The company is making the cuts, which would start on Tuesday, to lower expenses and compensate for overhiring during the peak demand of the pandemic.”
Human Resources Division Among Hardest Hit
An earlier report by Fortune revealed that Amazon’s internal human resources division, known as People eXperience and Technology (PXT), will be among the most significantly affected. The division has been central to managing Amazon’s vast employee base and its evolving workplace culture.
“The internal HR division, People eXperience and Technology, is expected to be significantly affected due to the cuts.”
Automation And Artificial Intelligence Transforming Roles
Chief Executive Officer Andy Jassy has previously cautioned that automation and artificial intelligence are poised to reshape the company’s workforce structure. Earlier this year, he acknowledged that technological advances could displace some white-collar roles while urging staff to adapt and learn new skills aligned with emerging technologies.
“Automation and AI are likely to shrink some white-collar roles down the line,”
Jassy said, emphasising the need for flexibility in an increasingly digital business environment.
Robots To Replace Hundreds Of Thousands Of Roles
According to The New York Times, Amazon’s robotics division is accelerating efforts to automate up to 75% of the company’s operations by 2027. The report stated that this initiative could replace as many as 160,000 roles in the United States alone within the next two years.
“Amazon’s robotics team is working towards automating 75% of the company’s entire operations and expects to remove 160,000 U.S. roles that would otherwise be needed by 2027.”
Long-term projections suggest that by 2033, Amazon could expand its automation capabilities to a point where it will no longer need to hire roughly 600,000 positions that would have been required under current operational structures.
“Amazon is planning to boost its robot automation to the point that it can replace 600,000 jobs it would have otherwise had to hire for before 2033.”
Tech Industry Follows Similar Path
Amazon’s move mirrors a broader trend in the technology sector, where leading firms are increasingly relying on automation to boost productivity and reduce labour costs. Meta Platforms, the parent company of Facebook, recently laid off around 600 employees from its artificial intelligence superintelligence unit and dismissed additional staff in risk and compliance roles. The company attributed these reductions to advanced automation systems that allow it to manage compliance functions more efficiently.
“Deliver more accurate and reliable compliance outcomes.”
Market Response And Industry Implications
Despite the magnitude of the cuts, Amazon’s stock rose 1.1% ahead of Monday’s market close, indicating investor confidence in the company’s cost-saving strategy. Analysts believe that Amazon’s restructuring and increased automation could position it for greater profitability in the long term, though it raises broader concerns about employment security in the global technology sector.
As automation deepens across industries, the balance between innovation and employment stability will remain one of the defining challenges of the digital era.
