Amazon is preparing to eliminate up to 30,000 corporate positions as part of a major restructuring tied to its growing use of artificial intelligence. The decision reflects the company’s efforts to streamline operations, reduce costs, and adapt to post-pandemic realities.
Although the cuts represent less than 2% of Amazon’s 1.55 million global employees, they affect nearly 10% of its corporate workforce. This marks Amazon’s largest reduction since 2022, when around 27,000 positions were eliminated.
Multiple Divisions Expected to Be Impacted
According to insiders, several departments are expected to face significant downsizing. These include human resources, operations, devices and services, and Amazon Web Services (AWS). Managers of affected divisions were briefed in advance and began notifying employees this week.
In recent years, Amazon has already reduced staff in smaller waves across units such as communications and podcasting. However, this latest round is broader, aiming to simplify internal structures and boost efficiency across departments.
Efficiency Push and AI Integration
Under CEO Andy Jassy, Amazon has launched an aggressive campaign to reduce bureaucracy and flatten management layers. Earlier this year, he introduced an anonymous feedback channel that prompted over 1,500 employee submissions and more than 450 internal improvements.
Jassy has repeatedly highlighted AI’s role in automating routine corporate tasks. Analysts believe these advances are directly influencing the company’s decision to reduce headcount. “The latest move suggests AI is enabling higher productivity, allowing fewer employees to manage more work,” noted industry experts.
Human Resources Division and Remote Staff Face Heavy Cuts
Reports indicate that the human resources division could see a reduction of up to 15%. The return-to-office policy has also intensified the impact. Employees who remain remote or live far from corporate hubs are being classified as “voluntary quits” for non-compliance, allowing the company to avoid severance costs.
This restructuring comes amid widespread layoffs across the technology sector. Nearly 98,000 tech jobs have already been lost in 2025, compared to 153,000 for the entirety of 2024.
AWS Faces Slowing Growth and Outage Challenges
Amazon Web Services, the company’s most profitable division, has shown signs of slowing growth. In the second quarter, AWS reported $30.9 billion in sales, up 17.5%, but still lagging behind Microsoft Azure and Google Cloud.
A 15-hour internet outage earlier this month disrupted services like Snapchat and Venmo, adding further pressure on the cloud unit. Despite these setbacks, third-quarter sales are projected to reach $32 billion, marking an 18% increase year-over-year.
Seasonal Hiring and Diversity Restructuring Continue
Despite the job cuts, Amazon expects strong performance during the holiday season and plans to hire 250,000 seasonal workers, consistent with previous years. The company also recently reorganized its People Experience and Technology unit, particularly its diversity segment, focusing on internal promotions and role adjustments.
Amazon’s shares rose 1.2% to $226.97 ahead of its third-quarter earnings announcement, signaling investor confidence in its cost-cutting and AI-focused strategy.
Paramount Skydance Also Announces Job Reductions
In a related development, Paramount Skydance will lay off about 1,000 employees this week following its $8.4 billion merger. The cuts account for nearly 5% of its workforce and come as the company restructures operations post-merger.
As of late 2024, Paramount employed around 18,600 permanent workers and 3,500 project-based staff. The layoffs align with broader trends of consolidation across the entertainment and media sectors, as companies prioritize efficiency and digital transformation.
