Amazon Plans Major Job Cuts, Warns Managers Ahead of Announcement

Amazon is preparing to announce significant job cuts impacting its corporate workforce, with estimates suggesting that up to 30,000 employees could be affected across the United States, United Kingdom, and Canada. Internal messages shared with managers indicate that the formal announcement will take place on Tuesday, following a thorough review of the company’s organizational structure and priorities.

The planned cuts come as part of CEO Andy Jassy‘s ongoing efforts to streamline operations and reset the company’s culture, which has evolved since the pandemic. Amazon has seen a marked slowdown in growth, prompting the company to reassess its workforce needs. According to internal documents reviewed by Business Insider, a draft email to affected employees outlines that job eliminations are necessary as Amazon shifts its focus for the future.

Affected teams are expected to include various departments such as human resources and retail. The email draft specifies that those impacted will receive a severance package that includes full pay and benefits for the next 90 days. It has been reported that this round of job cuts could represent approximately 10% of Amazon’s corporate workforce, which has already been reduced from 1.6 million employees in 2021 to 1.55 million in the previous year.

As part of the restructuring, Jassy has implemented strict cost controls and performance metrics while returning most corporate employees to the office full-time. This shift marks a significant cultural change for Amazon, which had previously thrived in a more flexible work environment. Since the end of 2022, the company has already cut at least 27,000 jobs and has frozen hiring in its retail division.

In June, Jassy indicated that advancements in artificial intelligence could lead to further efficiency gains, potentially impacting the workforce. This trend was evident earlier in the year when Amazon Web Services, the company’s cloud computing unit, also experienced layoffs.

An Amazon spokesperson did not respond to requests for comment regarding the latest developments. As the company prepares for this announcement, the focus remains on navigating the challenges of a post-pandemic landscape, where the rapid growth that characterized earlier years has given way to a need for greater operational efficiency.

The upcoming job cuts represent a pivotal moment for Amazon as it continues to adapt to changing market conditions and reassess its strategic priorities moving forward.