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Amazon to lay off employees
Amazon is set to downsize its corporate workforce, with plans to cut as many as 30,000 jobs starting this week, news agency Reuters reported, citing three people familiar with the matter.
The massive layoff would represent nearly 10% of the company's 350,000 corporate employees, making it Amazon’s largest job elimination effort since late 2022, when it eliminated approximately 27,000 positions.
Amazon's multiple rounds of termination
Over the past two years, the company has conducted multiple rounds of layoffs, slashing roles across departments such as communications, devices, and podcasting.
Between late 2022 and 2023, CEO Andy Jassy handled the company’s largest-ever layoffs, which removed around 27,000 corporate positions, nearly 8 per cent of its office staff at the time.
The job cuts are intended to reduce expenses and compensate for aggressive overhiring during the peak pandemic demand. Fortune previously reported that the human resources division could face a reduction of around 15%.
Amazon’s redundancy plan aligns with CEO Andy Jassy’s broader initiative to reduce bureaucracy within the company, including lowering the number of managers.
Jassy has indicated that increased dependency on artificial intelligence (AI) will lead to further job reductions by automating repetitive tasks.
Another crucial factor cited by insiders is the company’s recent stringent requirement for corporate staff to return to the office five days per week.
This policy has reportedly failed to generate sufficient voluntary attrition, making layoffs mandatory to hit desired headcount targets.
Some employees who have not complied are reportedly being asked to exit voluntarily, the report claimed.
As reported by The Times of India, despite the corporate restructuring, Amazon plans to offer 250,000 seasonal jobs, the same figure as the prior two years, to staff its warehouses and handle the expected seasonal rush.