Amazon Prepares for Major Corporate Job Cuts Up To 30,000 This Week

Amazon is reportedly preparing for a significant reduction in its corporate workforce, with plans to eliminate as many as 30,000 jobs starting this Tuesday. This move is understood to be a strategic effort by the e-commerce giant to curb expenditures and address the overhiring that occurred during the surge in demand experienced throughout the pandemic. This information comes from three individuals closely familiar with the company's internal discussions.

While the figure represents a relatively small fraction of Amazon's expansive 1.55 million total global employees, it constitutes a substantial nearly 10% of its approximately 350,000 corporate staff. Should these cuts proceed as planned, it would mark the largest round of job reductions at Amazon since late 2022, when approximately 27,000 positions were eliminated across various departments. An Amazon spokesperson, when approached for comment on the impending cuts, declined to provide a statement.

This upcoming wave of layoffs follows a period over the past two years where Amazon has been incrementally shedding smaller numbers of jobs across several divisions, including devices, communications, and podcasting. The new cuts, set to commence this week, are expected to broadly impact numerous areas within the company. Divisions reportedly affected include Human Resources, known internally as People Experience and Technology, along with Devices and Services, and Operations, among others, according to the informed sources.

Preparations for the notifications were already underway on Monday, as managers of the teams slated for impact underwent training sessions. These sessions focused on how to effectively communicate the difficult news to their staff, with the actual notifications expected to begin reaching employees via email starting tomorrow morning. This systematic approach underscores the scale and sensitive nature of the corporate restructuring.

Amidst these developments, Amazon's shares showed resilience, trading up 1.5% at $227.53. The company is scheduled to report its third-quarter earnings this Thursday, a key event that analysts and investors will be watching closely for further insights into its financial health and strategic direction following these significant workforce adjustments.