Amazon is preparing to cut thousands more jobs as part of a major restructuring influenced by artificial intelligence and organisational changes, according to reports. The second round of layoffs could be announced as soon as next week, following the elimination of 14,000 white-collar roles in October. These latest reductions are expected to be of a similar scale, bringing the company closer to its longer-term goal of cutting around 30,000 positions.
Founded in 1994 by Jeff Bezos, who remains executive chairman and Amazon’s largest individual shareholder, the company employs roughly 1.58 million people worldwide. While the planned cuts represent only a fraction of Amazon’s global workforce, they would account for almost 10 per cent of the company’s corporate staff.
Reports indicate that the upcoming layoffs could affect teams across Amazon Web Services, retail operations, Prime Video, and the human resources division, known internally as People Experience and Technology. Other business units may also see reductions.
Amazon linked the October job cuts to the rapid adoption of AI, with an internal memo describing the technology as the most significant shift since the internet, enabling faster innovation. However, Chief Executive Andy Jassy has said the reductions were not solely driven by AI or cost-cutting but by organisational design. Speaking during the company’s third-quarter earnings call, Jassy said: “It’s culture. You end up with a lot more people than what you had before, and you end up with a lot more layers.”
Jassy has warned that Amazon’s corporate workforce will shrink over time as AI-driven efficiencies reduce the need for certain roles. Like other technology companies, Amazon has increasingly used AI to write software code and deploy so-called AI agents to automate routine tasks. The company highlighted a new generation of AI models at its Amazon Web Services conference in December, demonstrating the central role AI will play in its future strategy.
If confirmed, the latest round of layoffs would be the largest in Amazon’s 30-year history. The company previously cut about 27,000 jobs in 2022, following the slowdown in growth after the pandemic boom. Employees affected by the October reductions were kept on the payroll for 90 days, giving them time to apply for internal roles or find new employment. That period ends on Monday, adding to expectations of imminent announcements.
The developments underscore how even the largest technology companies are reshaping their workforces as AI transforms corporate functions. Analysts say the changes highlight the growing impact of automation on white-collar employment, raising questions about how office jobs will evolve in the coming years.
