Amazon Announces Second Round of Layoffs, Eliminating 14,000 Corporate Jobs
Amazon is set to initiate a second round of layoffs, affecting approximately 14,000 corporate employees. This decision, reported to begin on January 27, is part of a broader strategy to cut a total of 30,000 jobs. The announcement follows a prior round of layoffs that eliminated 14,000 positions in October 2022.
Details of the Layoff Plan
The current layoffs are projected to impact several key Amazon divisions:
- Amazon Web Services
- Retail
- Prime Video
- People Experience and Technology (Human Resources)
The full extent of these layoffs remains uncertain and subject to change. Amazon had not commented on the report at the time of publication.
Impact on Employment
With these layoffs, Amazon aims to reduce its corporate workforce by 10%. Despite the size of the cuts, the firm retains a substantial workforce of 1.58 million employees. In addition to the current round, the company had previously laid off 27,000 employees in 2022.
Reasons Behind the Layoffs
Amazon’s decision to cut jobs stems from a desire to streamline operations and reduce bureaucratic layers. In September 2024, CEO Andy Jassy emphasized the need to minimize management structures. He expressed the goal of fostering a more agile work environment, akin to operating “like the world’s largest startup.” This approach aims to enhance employee decision-making and improve customer service.
Future Financial Outlook
Amazon will release its financial results for the fourth quarter of 2025 on February 5. This report could provide further insights into the company’s financial health and the rationale behind the restructuring efforts.
As layoffs continue, the focus remains on navigating the complexities of maintaining productivity while addressing workforce size in a rapidly evolving market.
