A bold move by Amazon has sent shockwaves through the tech industry. The e-commerce giant is set to cut 30,000 corporate jobs, a significant step to streamline operations and reduce costs. But here's where it gets controversial: this is the largest job reduction since the pandemic-induced overhiring, and it's a stark contrast to Amazon's previous hiring spree.
While the number may seem daunting, it's important to note that this accounts for only a fraction of Amazon's massive workforce. However, it marks a 10% reduction in their corporate staff, which is a substantial change. This move follows reports of further cuts across multiple divisions, with human resources bearing the brunt of the initial layoffs.
And this is the part most people miss: Amazon has been gradually trimming its workforce over the past two years, with smaller cuts across various business units. From podcasting to cloud services, no division has been immune to the cost-cutting measures. In fact, earlier this year, Amazon Web Services (AWS) saw several hundred employees laid off, and the devices and services unit also faced nearly 100 position cuts.
The latest round of layoffs is expected to impact several key divisions, including human resources, devices and services, and operations. Managers from these teams have reportedly been trained on how to communicate these difficult decisions to their staff, with email notifications set to begin soon.
CEO Andy Jassy has been leading a mission to eliminate bureaucracy and streamline processes. He introduced an anonymous complaint line to identify inefficiencies, resulting in hundreds of process changes. Jassy believes that by embracing artificial intelligence (AI), Amazon can automate repetitive tasks and further reshape its workforce. He sees this as an opportunity for employees to upskill and adapt to the changing landscape.
In a surprising twist, Amazon plans to hire 250,000 seasonal workers to manage the increased demand during the holiday season. This contrast between downsizing and hiring highlights the complex nature of the tech industry's current state.
As of now, nearly 98,000 tech jobs have been cut in 2025 alone, with a continued consolidation trend in the sector.
What do you think about Amazon's decision? Is it a necessary step to stay competitive, or does it raise concerns about job security in the tech industry? Share your thoughts in the comments!
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