Amazon is preparing to lay off tens of thousands of corporate employees, according to multiple reports. According to the Wall Street Journal, the job cuts could reach as many as 30,000 positions and may begin as early as Tuesday. People familiar with the matter shared these details with the publication.
Scale and Timing of Job Cuts
The layoffs would affect nearly 10% of Amazon’s roughly 350,000 corporate employees. This represents the company’s largest round of job cuts since late 2022, when Amazon eliminated around 27,000 positions. Reuters reports the company is looking to cut expenses and correct for over-hiring during the peak demand of the pandemic.
Bay Area Impact
Amazon maintains major offices throughout the Bay Area in Santa Clara, San Francisco, Sunnyvale, and East Palo Alto. The company has not disclosed which locations will be affected by the planned job reductions. The number of positions that could be eliminated from Bay Area facilities remains unclear.
AI and Workforce Changes
In June, Amazon CEO Andy Jassy sent a memo to staff about the role of artificial intelligence in the company’s future. He stated that increased use of AI would eliminate the need for certain jobs. Jassy called the technology a once-in-a-lifetime change for the company and the industry.
It is not clear how many of the layoffs currently being reported are related to AI implementation. The company has not confirmed the job cuts or provided details about which departments or roles will be affected. Amazon has not responded to requests for comment about the reported layoffs.
The job reductions come as tech companies across the industry continue to adjust staffing levels. Many firms expanded rapidly during the pandemic when demand for digital services grew. Companies are now working to align their workforce size with current business conditions and economic forecasts.
