Amazon to Cut 30,000 Jobs as AI Shift Spurs Layoffs

Amazon is initiating a major workforce reduction, planning to lay off about 30,000 employees starting October 28, insiders told Reuters.

This downsizing aims to reduce costs and correct overstaffing done during the COVID-19 pandemic peak.

The planned layoffs would mark the largest reduction since the 27,000 job cuts in late 2022.

Though the total cutoff represents a small fraction of Amazon’s 1.55 million employees, it accounts for nearly 10% of the company’s roughly 350,000 corporate staff.

So far, Amazon has not officially confirmed the report. Following the news, Amazon shares rose 1.2% before slipping after market close.

Corporate Cuts Driven by AI and Efficiency Push

The job cuts will affect various divisions such as human resources, devices and services, and operations, Reuters revealed.

Amazon CEO Andy Jassy is pushing to trim what he views as bureaucratic layers slowing the company’s agility.

Jassy’s strategy includes leveraging artificial intelligence to reduce human error and increase automation, which is expected to lead to further cuts in 2026.

Earlier the same day, Amazon announced a fresh $10 billion investment in its cloud platform, AWS, underscoring a shift in focus towards technology-driven growth.

Amazon is preparing to release its Q3 earnings report on October 30. Analysts forecast revenues close to $178 billion, reflecting a 12% increase year over year.

Earnings per share are expected between $1.57 and $1.60. Recent reports show Amazon’s net sales hit $167.7 billion, while AWS revenues surged to $30 billion. Amazon’s stock price target has been raised to $269 amid strong market momentum.

Market Reaction and Future Outlook

Despite layoffs, investors appear optimistic about Amazon’s long-term prospects.

The company is streamlining operations while investing heavily in AI and cloud services, which promise to shape its future growth.

Industry watchers note that cutting excess corporate roles aligns with a broader trend among tech giants adapting to economic shifts.

The focus on AI also signals a transformation in how Amazon operates internally and serves its vast customer base.