Layoffs: Amazon To Slash 30,000 Corporate Jobs Starting Today

Amazon is set to lay off up to 30,000 corporate employees as part of cost-cutting measures. The layoffs will impact various divisions, reflecting ongoing adjustments in the tech industry following the pandemic. CEO Andy Jassy aims to streamline operations and enhance productivity through AI tools.

Amazon is set to begin reducing its workforce by up to 30,000 corporate positions starting Tuesday. This decision comes as the company seeks to cut costs and address overhiring during the pandemic's peak demand, Reuters reported citing sources familiar with the situation.

The reduction represents a small fraction of Amazon's total workforce but nearly 10% of its corporate employees.

The layoffs mark Amazon's most significant job cuts since late 2022 when it eliminated around 27,000 positions. An Amazon spokesperson to comment on the matter. Over the past two years, Amazon has been gradually reducing jobs across various divisions, including devices, communications, and podcasting.

Impact on Various Divisions

The upcoming layoffs are expected to affect several departments such as human resources, operations, devices and services, and Amazon Web Services. Managers of affected teams were instructed to prepare for communicating with staff after email notifications are sent out on Tuesday morning.

CEO Andy Jassy has initiated efforts to streamline operations by cutting down on bureaucracy and reducing managerial roles. He introduced an anonymous complaint line that received about 1,500 responses and led to over 450 process changes earlier this year.

AI-Driven Changes

Jassy mentioned in June that increased use of artificial intelligence tools might result in further job reductions by automating routine tasks. "This latest move signals that Amazon is likely realizing enough AI-driven productivity gains within corporate teams to support a substantial reduction in force," said Sky Canaves, an eMarketer analyst.

The full extent of these job cuts remains uncertain as numbers may change with shifting financial priorities. Fortune previously reported that the human resources division could face a cut of approximately 15%. Additionally, a program requiring employees to return to the office five days per week has not resulted in sufficient attrition.

Office Return Program

Some employees who do not swipe in daily due to living far from corporate offices or other reasons are being told they have voluntarily quit without severance pay. This move saves costs for Amazon. Layoffs.fyi estimates that around 98,000 tech jobs have been lost this year across 216 companies.

This trend reflects broader challenges faced by tech companies as they navigate post-pandemic realities and adapt their workforce strategies accordingly. The impact of these changes will continue to unfold as companies like Amazon adjust their operations in response to evolving market conditions.

With inputs from Reuters