Amazon has announced plans to lay off approximately 30,000 corporate employees as part of a major restructuring effort focused on cost-cutting and expanding its investments in artificial intelligence (AI).
According to multiple reports, the layoffs — representing nearly 10% of Amazon’s 350,000 corporate roles — are expected to begin this week. However, the cuts will not affect the company’s warehouse and distribution staff, who make up the majority of its 1.5 million global workforce.
CEO Andy Jassy described the move as part of a broader strategy to eliminate redundant layers within the corporate structure and enhance operational efficiency. He emphasized that AI would play a central role in Amazon’s future operations.
“Our conviction that AI will change every customer experience is starting to play out,” Jassy said during the company’s last quarterly earnings call.
The restructuring comes as Amazon faces mounting pressure from investors to justify its heavy AI spending ahead of its next earnings report scheduled for Thursday. Analysts expect Amazon Web Services (AWS), the company’s most profitable division, to show revenue growth and stronger margins following its AI-focused expansion.
The announcement follows a major AWS outage last week that disrupted several popular online platforms — including Prime Video, WhatsApp, Disney+, and Snapchat — due to a Domain Name System (DNS) failure. The incident underscored the global reliance on Amazon’s cloud infrastructure.
Despite concerns over job losses, Amazon’s shares rose slightly after news of the layoffs broke, with investors viewing the decision as a sign of financial discipline and long-term strategic focus.
