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Amazon's Second Wave: 30,000 Job Cuts Loom as AI Reshapes Workforce

Amazon is reportedly preparing to announce a second major round of job cuts next week, continuing its plan to eliminate 30,000 positions. The layoffs, expected to mirror the scale of the 14,000 cuts made in October, will affect white-collar roles in divisions like AWS and human resources. While an internal letter linked the reductions to transformative AI efficiencies, CEO Andy Jassy later clarified the cuts were driven by a need to reduce corporate bureaucracy, not solely finances or AI. Despite the scale, the 30,000 figure represents a small fraction of Amazon's global workforce of 1.58 million.

Key Points: Amazon 30,000 Job Cuts Plan: Second Round Expected Next Week

  • Second round of layoffs expected next week
  • Cuts linked to AI-driven efficiency gains
  • Impacts AWS, HR, Prime Video, and retail
  • Largest layoff in Amazon's 30-year history
  • Part of plan to reduce corporate bureaucracy
2 min read

Amazon's 2nd round of 30,000-job cut plan likely next week: Report

Amazon plans a second major layoff round, targeting 30,000 jobs total. CEO Andy Jassy cites AI efficiency, not finances, as the core driver.

"This generation of AI is the most transformative technology we've seen since the Internet - Internal Amazon Letter"

New Delhi, Jan 23

US e-commerce giant Amazon is likely to announce a second round of job cuts next week, in its plan to trim its workforce by 30,000, due to efficiency gains from artificial intelligence, according to reports.

The new round of layoffs is expected to impact white collar roles across divisions including Amazon Web Services (AWS), the People Experience and Technology unit (human resources), Prime Video and retail, according to reports.

In October last year, Amazon reduced 14,000 white-collar employees from its workforce, around half of its total target 30,000. The magnitude of job cuts next week is expected to be of the same level, according to a Reuters report, citing sources.

The company was yet to comment on the report.

The e-commerce giant had linked the October round of job cuts to the rise of artificial intelligence (AI) software in an internal letter. "This generation of AI is the most transformative technology we've seen since the Internet, and it's enabling companies to innovate much faster than ever before," according to the letter.

Later, however, Amazon CEO Andy Jassy told analysts during the company's third-quarter earnings call that the reduction was not "really financially driven" or "AI-driven." He said, "it's culture," alluding that the company had too much bureaucracy.

"You end up with a lot more people than what you had before, and you end up with a lot more layers," he said.

Jassy had said earlier in 2025 that Amazon's corporate workforce would get smaller over time from efficiencies gained through AI implementation.

Though the job cut affecting 30,000 employees would be the largest layoff in Amazon's three-decade history after 27,000-job cuts in 2022, it would represent a small portion of Amazon's 1.58 million employees.

Affected workers could remain on the payroll for 90 days, during which time they could apply for jobs internally or seek other employment, according to reports.

Leading business executives of tech companies at the World Economic Forum meeting in Davos said this week that artificial intelligence would not replace human jobs but can only reshape work by automating tasks.

- IANS

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Reader Comments

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Rohit P
First they say it's because of AI, then the CEO says it's "culture" and "bureaucracy". Which is it? Feels like mixed messaging to me. This level of layoffs, even if a small percentage, shakes confidence in the tech sector globally. Indian IT companies might see a ripple effect.
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Aditya G
The silver lining is the 90-day period to find another role internally. That's a decent severance policy compared to some companies that just show you the door. Still, 30,000 families impacted is no small thing. Tech workers need to upskill continuously now, AI is not going away.
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Sarah B
As someone who works in HR tech, the cuts in the "People Experience" unit are ironic. The very team that manages employee experience is being let go. It sends a terrible message about company culture, regardless of what Jassy says about bureaucracy.
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Karthik V
This is the reality of the global market. Companies will always optimize for efficiency. The Davos executives are right - AI reshapes work. We in India have seen this before with outsourcing and automation. Time to adapt, not just fear. New types of jobs will emerge.
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Meera T
My cousin in Bangalore was part of the October layoffs. It was a tough phase, but he found a good position at an Indian startup within 60 days. The market is still absorbing talent, especially with strong AWS experience. Stay positive and network, folks!

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