Amazon is reportedly planning to lay off thousands more employees next week, affecting core divisions such as AWS and retail.

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According to sources cited by Reuters, tech giant Amazon is planning to launch a new round of large-scale layoffs next week, expected to affect thousands of jobs. This round of layoffs is part of a broader downsizing plan aimed at optimizing about 30,000 corporate positions.

Reuters reports that the scale of these layoffs is expected to be comparable to the first round in October last year and could begin as early as next Tuesday. Affected divisions include its core profit engine Amazon Web Services (AWS), retail business, Prime Video, and the human resources department. Sources told Reuters that specific details may still change.

This is a continuation of the largest layoff plan in Amazon's history. If the 30,000 layoffs are fully implemented, they will account for nearly 10% of its corporate workforce. In October last year, Amazon already cut about 14,000 white-collar positions, or half of the target total. These laid-off employees are currently in a 90-day transition period, which will expire next Monday.

These layoffs highlight the ongoing adjustments by large tech companies in seeking efficiency and responding to technological change. Amazon CEO Andy Jassy has previously stated that as artificial intelligence increases efficiency, the company's corporate workforce is expected to gradually shrink. Nevertheless, Jassy's explanation for the layoffs has emphasized different points in internal memos and earnings calls, attracting close market attention to the company's strategic priorities.

Core Divisions Facing Restructuring

These layoffs have a broad impact, reaching Amazon's most strategically significant business segments. In addition to the retail and Prime Video departments, which are facing growth pressure, even AWS, the company's long-term profit pillar, is not spared. Moreover, the human resources department will also be affected in this round of adjustments.

Although Amazon currently has about 1.58 million employees, the vast majority are in logistics centers and warehouses. While the planned reduction of 30,000 jobs is a small portion of the total workforce, it is concentrated in corporate functional departments, meaning nearly one-tenth of white-collar staff will be affected.

This number exceeds the company’s previous record of about 27,000 positions cut in 2022, making it the largest layoff action in Amazon's thirty-year history.

Layoff Motives: Bureaucracy or AI-Driven?

Regarding the driving forces behind the layoffs, statements from management have shown some complexity. In October last year, Amazon linked the first round of layoffs to the rise of artificial intelligence software in an internal memo, calling this generation of AI "the most transformative technology since the internet," enabling the company to innovate at unprecedented speed.

However, CEO Andy Jassy clarified to analysts during the subsequent third-quarter earnings call that the layoffs "are not really financially driven, nor are they truly AI-driven." He attributed the reason to "cultural" factors, referring to too much bureaucracy within the company. Jassy pointed out, "In the end, you find you have a lot more people than before, and more layers as a result."

Although Jassy downplayed the direct role of AI in short-term layoff decisions, the trend of companies using AI to replace manual labor has become irreversible. Companies are increasingly using AI to write code and deploying AI agents to automate routine tasks, reducing costs and reliance on manual labor. Amazon itself also heavily promoted its latest AI models at its annual AWS cloud computing conference last December.

Previous Layoff Progress

Amazon’s current layoff plan is being carried out in stages. The approximately 14,000 employees affected in October last year were told to keep 90 days of payroll records during which they could apply for internal transfers or seek external opportunities. This buffer period will end this Monday, after which the company plans to launch a second round of layoffs.

So far, Amazon spokespersons have declined to comment on the latest layoff plans.

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