Amazon to Cut More Jobs as CEO Jassy Targets Leaner Organisation

Amazon is getting ready to make more layoffs. With this action, Amazon is continuing a multi-phase personnel reduction that has previously resulted in the elimination of thousands of corporate positions. The business is restructuring to make artificial intelligence more widely used. According to media reports, Amazon may lose up to 30,000 white-collar jobs overall as a result of the fresh cuts, which are anticipated to start this week.

According to earlier media reports, the corporation had already eliminated approximately half of the targeted reduction—roughly 14,000 corporate positions—in October.  The most recent round is anticipated to have an impact on a number of significant business areas, including Prime Video, retail operations, Amazon Web Services, and the People Experience and Technology human resources group. The ultimate number of positions to be cut and the exact date across divisions have not been made public by Amazon.

Why Amazon is Proactively Reducing its Workforce?

The cutbacks arise in conjunction with the expiration of the 90-day internal job-search period for employees who were affected by the October cuts. This procedure enables employees to look for redeployment inside the organisation prior to their positions being terminated. One of the biggest waves of corporate job losses in Amazon's history is expected to occur as a result of the expiry. Andy Jassy, the CEO, has frequently presented the cuts as a component of a larger initiative to streamline Amazon's organisational structure and expedite decision-making.

According to Jassy's earlier remarks, which were obtained by Reuters, the company's rapid expansion during the epidemic resulted in an excessive number of management tiers. At the time, Jassy stated that the reduction was driven more by culture than by money or even artificial intelligence. He said that overbearing bureaucracy had weakened accountability and delayed execution. Amazon has emphasised artificial intelligence as a key factor in its upcoming expansion phase. The company said in a recent message to shareholders that generative AI has the ability to change productivity across all of its companies and is the most revolutionary technology since the internet.

Layoffs a Common Scenario for Tech Giants Like Amazon

Following significant hiring during the epidemic years, Amazon has continued to reduce workers until 2026, joining the ranks of other large technological companies. The industry has increasingly pointed to cost containment, organisational simplification, and AI adoption as causes of ongoing headcount declines. The magnitude of the cuts for Amazon highlights the difficulty in striking a balance between demands to control costs and investment in cutting-edge technologies.

Employees and investors will be watching closely to see if a leaner corporate structure produces the faster execution that Jassy promised. Approximately 1.58 million people work for Amazon worldwide; the great majority of them are employed in fulfilment centres and warehouses. Nearly 10% of its white-collar workers are thought to be impacted by the present layoffs, which are focused on business and technology roles.