Amazon is on course to execute the most significant round of redundancies since its founding in 1994, with plans that would ultimately see 30,000 corporate positions eliminated across the technology giant.
The scale of the restructuring would surpass the approximately 27,000 roles cut in 2022, representing a reduction of nearly 10 per cent of the company’s white-collar workforce.
Chief executive Andy Jassy has attributed the sweeping changes to organisational concerns rather than financial pressures or the emergence of artificial intelligence. During the firm’s third-quarter earnings call, he told analysts the decision was rooted in “culture,” explaining that Amazon had accumulated excessive layers of management and more personnel than required.
Sources familiar with the situation indicated that a second tranche of approximately 14,000 roles could be announced as soon as next week, with redundancies potentially commencing from Tuesday. The details, however, have not been finalised and remain subject to change.
Multiple divisions are understood to be in scope, including Amazon Web Services, the retail operation, Prime Video and the human resources function known internally as People Experience and Technology. Insiders cautioned that the final extent of the cuts could yet widen beyond these areas.
The forthcoming redundancies would follow an initial wave of 14,000 corporate positions announced in October, which accounted for roughly half of the overall reduction target first reported by Reuters. Staff affected by those earlier cuts were placed on a 90-day notice period, which expires on Monday.
Amazon, which employs 1.58 million people globally — the vast majority in fulfilment centres and warehouses — has declined to comment on the reports.
The company is scheduled to publish fourth-quarter results on February 5.
