Amazon's Biggest Layoffs Yet Amid AI Shift

Amazon is preparing to launch its largest-ever round of layoffs, which could affect around 30,000 corporate employees across various divisions. This significant workforce reduction signals a major shift in the company's operations as it aligns itself with the growing adoption of artificial intelligence (AI). According to reports, employees will receive formal notifications regarding their job status starting Tuesday morning.

The layoffs will impact nearly all business units within Amazon, including cloud computing, devices, communications, and retail operations. Currently, the company employs approximately 350,000 people in corporate roles and around 1.54 million globally when including warehouse and logistics staff. Since 2022, Amazon has already reduced its workforce by over 27,000 employees through smaller restructuring efforts.

CEO Andy Jassy has been at the forefront of this cost-cutting strategy, which he initiated during the pandemic when the growth of e-commerce began to slow down. He emphasizes the need to simplify corporate structures and enhance decision-making processes. The ongoing restructuring aims to make Amazon more agile and responsive to emerging technologies and new business models.

This decision comes amidst a broader trend in the technology sector, where many companies are reducing their workforce while simultaneously investing more in AI. Data shows that over 200 tech companies have let go of about 98,000 workers in 2025, with significant cuts announced by major players like Microsoft, Google, Meta, and Intel as they shift their resources toward AI development and automation.

Jassy has previously indicated that AI is expected to play a crucial role in reshaping Amazon's workforce. In a memo to employees, he highlighted that automation and generative AI tools would take over more routine tasks, leading to a leaner corporate workforce in the future. This reflects a significant transformation in the nature of work, as companies adapt to the increasing integration of AI into their operations.

As Amazon navigates this transition, its latest moves will not only affect its employees but also resonate throughout the tech industry, indicating a profound evolution in how businesses operate in the age of AI.