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Amazon Confirms Largest Cut Since 2022 and Bets on Automation to Reduce Costs and Increase Operational Efficiency
On Tuesday (October 28, 2025), Amazon will launch a global plan to eliminate up to 30,000 corporate jobs.
The number represents nearly 10% of its 350,000 administrative employees, according to three sources speaking to Reuters.
The move comes as the company seeks to reduce expenses and optimize internal structures after mass hiring during the pandemic.
Reasons and Context
During the height of Covid-19, Amazon rapidly expanded its workforce to meet the surge in online sales.
However, with market stabilization, it is now attempting to correct excesses and control costs.
Additionally, CEO Andy Jassy is leading a broad internal reorganization.
His goal is to eliminate what he calls “excess bureaucracy” and accelerate the digitalization of processes. In June, Jassy warned that the growing use of artificial intelligence would lead to new layoffs.
These layoffs would primarily affect repetitive and automatable tasks, reinforcing the pursuit of efficiency.
Scope of Cuts and Affected Sectors
According to Reuters and Bloomberg, the cut of up to 30,000 corporate positions will be the largest since late 2022.
That year, 27,000 people were laid off. Although the current number represents a small fraction of the company’s 1.55 million employees, the impact will be profound among office teams.
The most affected areas include human resources, electronics devices, digital services, and corporate operations. On Monday (October 27, 2025), managers in the affected divisions were trained to handle internal communications.
Meanwhile, termination emails began to be sent on the morning of Tuesday, according to internal sources.
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Strategy and Financial Outlook
While cutting administrative costs, Amazon continues to invest heavily in AWS (Amazon Web Services), its most profitable division.
In the second quarter of 2025, AWS reported US$ 30.9 billion in sales. Nevertheless, growth was lower than that of competitors Microsoft Azure and Google Cloud, which grew 39% and 32%, respectively.
The forecast for the third quarter indicates an 18% increase, totaling about US$ 32 billion. This pace is slightly below the performance in 2024.
Despite the layoffs, Amazon remains optimistic for the end of the year and will open 250,000 temporary positions to bolster its distribution centers. This number matches the volume of the past two years.
Market Reaction and Future Impacts
Shares of Amazon rose 1.3% on Monday (October 26), closing at US$ 227.11. The appreciation reflects investor confidence in the company’s ability to maintain positive margins with fewer staff.
Analysts like Sky Canaves from eMarketer highlight that the cuts indicate real productivity gains driven by AI. These gains would be enough to sustain a substantial reduction in the workforce.
According to Canaves, the company still needs to balance short-term pressures and long-term investments in technological infrastructure.
Path Forward
Although Amazon has not officially confirmed the final number of layoffs, internal sources indicate it may vary depending on financial priorities.
The outcome will also depend on the progress of automation projects. Nonetheless, the case marks a new chapter in the transformation of the e-commerce giant.
The company is trying to combine digital efficiency, structural streamlining, and sustained growth in AI.
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