Amazon’s Corporate Cutback: The Downsizing of 30,000 Employees

Amazon is reportedly set to reduce its corporate workforce by up to 30,000 employees as part of a cost-cutting measure to address over-hiring during the pandemic, as per a Reuters report.

GeekWire has reached out to Amazon for a statement regarding the potential layoffs.

Employees at Amazon are said to be anxious about the impending layoff notifications, which are expected to be delivered via email starting on Tuesday.

According to Bloomberg, various business units within Amazon, including logistics, payments, video games, and Amazon Web Services, will be affected by the layoffs.

As of early 2023, Amazon’s corporate workforce numbered around 350,000 employees, with no updated figures provided since then.

In 2023, Amazon underwent a significant layoff, reducing 27,000 corporate positions in multiple phases, followed by several smaller layoffs across different units.

Fortune recently reported that Amazon is planning to cut up to 15% of its human resources staff as part of a broader workforce reduction strategy.

Despite substantial growth in previous years, Amazon has been cautious in its hiring approach for the corporate workforce, with the headcount tripling between 2017 and 2022.

Notably, the reported layoffs coincide with Amazon’s substantial investments in artificial intelligence (AI). The company has announced plans to increase capital expenditures to over $100 billion by 2025, primarily directed towards AI capacity expansion within AWS.

Amazon CEO Andy Jassy hinted at potential workforce transformations due to generative AI technology, foreseeing efficiency gains leading to a reduction in the total corporate workforce.

As of June 30, Amazon reported a total employee count of 1.54 million, marking a 3% year-over-year increase, with the majority comprising warehouse staff.

In Seattle, Amazon employs approximately 50,000 corporate and tech workers at its headquarters, with an additional 12,000 in Bellevue.

The company is scheduled to announce its third-quarter earnings later this week.

Similarly, Microsoft has undergone significant layoffs, exceeding 15,000 employees since May, aligning with its investments in AI and data center expansion.

Recent reports suggest that Amazon aims to automate up to 75% of its warehouse operations by 2033, potentially reducing the need for over 600,000 additional workers despite continued sales growth.

GeekWire reporter Kurt Schlosser contributed to this article.