Amazon, the world’s largest e-commerce and cloud computing company, is once again in the spotlight, but this time not for record profits or innovations, but for its latest and largest round of job cuts. As of October 30, 2025, the company confirmed another sweeping wave of layoffs, marking one of the biggest workforce reductions in its history. Announced on October 28, these cuts affect around 14,000 corporate employees, with more expected in early 2026. This move is part of Amazon’s broader plan to restructure its workforce amid a shifting global economy, rising automation, and the company’s deep investment in artificial intelligence.
The layoffs come as part of a wider trend in the technology sector, where more than 98,000 jobs have been eliminated across over 200 companies in 2025 alone. With the industry moving rapidly toward AI-driven automation, Amazon’s decision reflects both cost-saving measures and a redefinition of how the company intends to operate in the coming years.
The October 2025 Layoffs
The latest round of layoffs was confirmed through an internal memo by Amazon’s Human Resources chief Beth Galetti, who explained that the company aims to “reduce layers, increase ownership, and realize efficiency gains” to strengthen innovation in artificial intelligence and other strategic fields. While initial rumours suggested that up to 30,000 jobs might be affected, Amazon stated that 14,000 roles have been cut for now, representing roughly 4% of its corporate workforce of 350,000 employees. The layoffs began on October 29, with notifications sent via email or text message. In several cases, employees found their system access revoked immediately after receiving the notice.
Most of those affected are mid-level managers and software engineers, especially those ranked between levels 5 and 7. In Amazon’s home state of Washington alone, over 1,000 software development engineers have been impacted. The company’s internal structure shows that the majority of the layoffs, about 80%, come from its core retail and logistics divisions, while the remaining cuts target Amazon Web Services (AWS), Devices and Services, Audible, and Advertising departments. Even Amazon’s gaming arm has not been spared, with several projects, including a planned Lord of the Rings multiplayer game, being cancelled.
The layoffs have also reached India, where an estimated 700 to 1,000 employees, primarily based in Bengaluru, have lost their jobs. One widely shared story described an employee who discovered their layoff through an automated email while returning from Diwali leave, a reflection of how abruptly these changes are being implemented. The process is expected to conclude by the end of 2025, with formal WARN notices already filed for 2,303 positions in Washington state, effective from January 2026.
Despite the widespread cuts, Amazon insists that it continues to hire in key areas related to AI research, automation, and robotics, suggesting that while the overall workforce will shrink, the nature of employment at Amazon is rapidly changing.
Amazon’s layoffs have not appeared overnight. They are part of a longer adjustment process that began after the company’s massive hiring spree during the COVID-19 pandemic. In 2020 and 2021, Amazon added over 800,000 employees, preparing for an online shopping boom that later cooled as economies reopened. When consumer demand slowed and inflation rose, Amazon found itself with a workforce that far exceeded its needs.
In 2022, Amazon announced its first major post-pandemic layoff, eliminating 27,000 jobs, mostly in its devices and HR divisions. The following year, in 2023, another 18,000 roles were removed, mainly affecting technology and retail operations. By 2024, cuts continued at a smaller scale, targeting 10,000 positions, including roles in Prime Video, AWS, and sustainability projects.
This year, 2025, has seen the harshest wave yet, 14,000 and counting, focused largely on mid-level managers and technical staff. Experts predict that by the end of 2026, total layoffs could surpass 30,000, making it one of the largest restructurings in the company’s 30-year history. Since 2022, Amazon has eliminated more than 70,000 jobs, changing not just its size but the very structure of its operations.
Why Amazon Is Cutting Jobs
Amazon’s leadership, including CEO Andy Jassy, has described these layoffs as a “strategic realignment” rather than a financial crisis. In company statements and earnings calls, Jassy has argued that the company needs to prepare for the next phase of technological development, one driven by artificial intelligence and automation.
AI is at the core of Amazon’s future plans. HR head Beth Galetti called it “the most transformative technology since the Internet,” explaining that it allows the company to innovate faster while requiring fewer employees for repetitive or administrative tasks. Industry analysts such as Professor Lynn Wu from the University of Pennsylvania have observed that AI is affecting white-collar workers before blue-collar ones. It is reshaping management and engineering jobs through automation tools like Amazon’s internal coding assistant, Kiro, which reduces the need for human developers.
However, not all experts agree that AI is the primary reason for these layoffs. According to Indeed’s 2025 Workforce Report, only about 0.7% of job functions across industries have been directly replaced by AI tools. Critics suggest that Amazon’s AI narrative helps soften the real reason, years of overhiring during the pandemic, followed by economic tightening, investor pressure, and slowing consumer growth.
Inflation, rising interest rates, and weaker consumer spending have also forced Amazon to cut costs. The company’s short-lived five-day return-to-office policy, introduced in early 2025, was expected to encourage voluntary resignations but instead sparked backlash and failed to reduce staff as intended. The subsequent layoffs, therefore, became unavoidable.
The layoffs have been sudden and impersonal for many employees. Some reported discovering their termination via automated emails during their commute or while on holiday. In several cases, access to internal systems was revoked before employees could contact their managers. A widely circulated post on X (formerly Twitter) from a recently promoted manager stated, “Performance doesn’t matter,” capturing the frustration among staff.
Severance packages vary but generally include 90 days of pay and benefits, followed by an additional two months’ salary. Amazon is also offering limited outplacement services, though voluntary resignations tied to the return-to-office policy do not qualify for severance.
The reaction online has been mixed. Many former employees have expressed disappointment and anger, especially as they see Amazon’s share price rising following the announcement. Some have described the experience as “cold and mechanical,” while others have urged colleagues to focus on reskilling and moving into AI-related roles. Viral posts and videos, including mocking reactions from public figures, have amplified the emotional toll of this downsizing wave.
Amazon’s layoffs reflect broader shifts across the global labour market. The tech sector, once a driver of job creation, has become a leader in workforce reductions. In the United States, the total number of announced layoffs in 2025 has already exceeded 946,000, the highest since the early pandemic years. The retail and logistics sectors have been hit particularly hard, with a 203% rise in job cuts this year.
Despite the layoffs, Amazon’s stock price climbed following the announcement, as investors viewed the cuts as an effort to improve efficiency and protect profits. The company now joins others such as Meta, UPS, Target, and Nestlé, all of which have announced major workforce reductions tied to AI restructuring. Economists warn that white-collar professionals, once considered safe from automation, are now facing increasing risk. As Georgetown University’s Harry Holzer described it, this is a “wake-up call” for professionals who need to adapt to a world where AI can perform analytical and managerial tasks once thought exclusive to humans.
