Amazon layoffs to begin tomorrow? Key sectors that could be impacted

E-commerce giant Amazon is planning a second layoff this week, with the goal of reducing its corporate workforce by about 30,000 people, Reuters reported, citing two people familiar with the matter.

Total layoffs in the second round are expected to be roughly the same as last year and could begin as early as Tuesday, January 27, sources told the news portal.

In October last year, the company laid off nearly 14,000 white-collar workers; That’s almost half of 30,000.

Which departments will be affected?

Employees in Amazon Web Services, retail, Prime Video, and People Experience and Technology HR units are expected to be affected, the report said. But while the full extent of the impact remains unclear, Amazon’s plans could still change.

The Seattle-based retail giant attributed the first layoffs in October to the rise of AI software, saying in an internal letter: “This generation of AI is the most transformative technology we’ve seen since the internet, allowing companies to innovate faster than ever before.”

CEO Andy Jassy later told analysts during the company’s third-quarter earnings call that the decline “wasn’t really financially driven, and it wasn’t even AI driven.” More accurately, he said, “it’s a culture,” which means the company has a lot of bureaucracy.

“You encounter a lot more people than you ever did before, and you encounter a lot more layers,” he said. Jassy has previously stated that he predicts that Amazon’s corporate workforce will decrease over time due to efficiencies gained from the use of artificial intelligence in 2025.

Large companies are increasingly using AI to write code for their software and are adopting AI agents that automate routine tasks to save costs and reduce dependence on humans, the report said. Amazon introduced its latest artificial intelligence models at its annual AWS cloud computing conference in December.

All 30,000 jobs are a small fraction of Amazon’s 1.58 million employees, which make up about 10% of the company’s corporate staff. Most of Amazon’s workforce works in fulfillment centers and warehouses. This would be the largest layoff in Amazon’s three-decade history. The company has cut nearly 27,000 jobs in 2022.

In October, affected workers were told they would remain on the payroll for 90 days, during which time they could apply for internal jobs or look for another job. This period expires on Monday.