Amazon's 30,000-Person Workforce Reduction: Largest Restructuring in Company History

Amazon has announced a significant corporate restructuring that will eliminate 30,000 positions across its workforce, marking the most substantial employment reduction in the company’s history. According to Reuters, citing sources familiar with the matter, this latest phase of workforce adjustments builds on earlier reductions and represents a strategic shift in how the tech giant manages its 1.58 million global workforce.

Scale and Scope of Job Cuts Across Multiple Divisions

The 30,000 job reduction represents nearly 10% of Amazon’s corporate staff and dwarfs the company’s previous record, which saw approximately 27,000 positions eliminated in 2022. The affected departments include Amazon Web Services (AWS), the retail division, Prime Video, and human resources. Although the restructuring spans multiple teams, it still constitutes a relatively small percentage of Amazon’s total employee base. The implementation began in phases, with an initial round of approximately 14,000 cuts announced in October 2025, followed by additional rounds of comparable magnitude scheduled to commence shortly thereafter.

AI Automation as the Driving Force Behind Corporate Restructuring

Amazon’s leadership has attributed the workforce adjustment to rapid advancements in artificial intelligence and automation technologies. The company initially linked the October 2025 reductions to AI’s capability to accelerate operational efficiency and enable faster task completion. However, CEO Andy Jassy has clarified that the restructuring is not primarily financially motivated but rather serves a dual purpose: reducing management layers and fostering a more agile organizational culture. Jassy suggested during early 2025 that Amazon’s corporate workforce would naturally diminish over time as AI systems automate routine administrative and technical tasks—a pattern increasingly common across the technology sector, where companies leverage AI for software development and repetitive operations.

Strategic Implications and Industry Trends

This restructuring reflects a broader industry shift where established tech companies are recalibrating their workforce to align with AI-driven productivity gains. By consolidating management structures and automating routine functions, Amazon aims to enhance decision-making velocity and organizational responsiveness. The 30,000-person reduction, when fully executed, will position the company to operate with leaner corporate infrastructure while maintaining its massive global operations.