Amazon is preparing for its biggest round of corporate job cuts since 2022, with plans to eliminate up to 30,000 positions starting Tuesday. The move affects nearly 10% of its corporate workforce and follows years of smaller layoffs across divisions such as devices, HR, and operations. Sources suggest that the job cuts will impact multiple departments, including Amazon Web Services (AWS), human resources (PXT), and corporate operations. Managers have reportedly undergone training on how to communicate the layoffs, signaling the company’s seriousness in restructuring its workforce.

The decision to reduce headcount reflects CEO Andy Jassy’s continued efforts to streamline operations, eliminate bureaucracy, and leverage artificial intelligence for efficiency. Jassy previously mentioned that increased use of AI tools could lead to more automation and fewer roles. Analysts suggest that the company’s productivity gains from AI and pressure to offset long-term AI infrastructure investments have accelerated these cuts. Despite AWS remaining Amazon’s biggest profit driver, its recent growth has slowed compared to competitors Microsoft Azure and Google Cloud, prompting renewed focus on cost efficiency.

Amazon’s strict return-to-office policy may have contributed to the larger-than-expected layoffs. Employees who failed to comply with the five-day office attendance rule have reportedly been classified as having voluntarily resigned, saving the company severance costs. As the tech sector continues to face widespread downsizing, Amazon’s cuts contribute to an estimated 98,000 tech layoffs in 2025 so far. Despite the reductions, Amazon is still preparing for a robust holiday season by hiring 250,000 seasonal workers, underscoring the company’s ongoing reliance on its vast logistics and retail operations even amid corporate downsizing.