In 2025, Amazon conducted a significant round of layoffs, cutting approximately 14,000 corporate jobs, primarily in white-collar roles across various divisions, including AWS, human resources, and operations. This reduction accounted for about 4% of Amazon’s white-collar workforce and is part of the company’s effort to restructure and align with rapid advances in AI and automation technologies. Amazon emphasized that the layoffs are necessary to “organize more efficiently” and stay agile amidst trans-formative AI changes that enable faster innovation.
The layoffs were communicated to affected employees primarily through early morning text messages directing them to check emails and contact help desks regarding their employment status. The company set a non-working period during which employees would receive full pay and benefits, along with severance packages and support for job placement and skill training. The HR executive Beth Galetti stated that despite these cuts, Amazon planned to continue hiring in critical strategic areas. This job cut wave followed prior reductions in earlier years and reflected the company’s strategic pivot to operate with fewer hierarchical levels and enhanced ownership amidst AI-driven business transformation.
This move occurred even as Amazon posted robust quarterly profits, highlighting a shift focused on cost efficiency and workforce restructuring to support future growth sectors, particularly AI investments. The layoffs caused some controversy because of the communication method and the simultaneous announcement of strong financial performance. The company described AI as the most transformative technology since the internet, driving the need for a leaner, more agile corporate structure.
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The layoffs primarily impacted white-collar roles across diverse sectors such as Amazon Web Services (AWS), human resources, operations, advertising, recruitment, payments, devices (including Fire TV), and customer analytics. Even divisions like Audible faced cuts as part of broader efforts to focus on critical growth areas.
The job cuts were communicated to affected employees mostly via two early-morning text messages instructing them to check their emails and contact a help desk regarding their employment status. This method aimed to prevent employees from arriving at the office unaware of their termination and finding their badges deactivated. Some affected employees also received internal Slack messages about their job status or reduced system access.
Amazon’s leadership, including CEO Andy Jassy and HR executive Beth Galetti, explained that the layoffs are not primarily financially motivated, as the company posted strong quarterly profits ($21 billion profit on $180 billion revenue in Q3 2025). Instead, the cuts are part of a strategic shift driven by AI adoption and the desire to streamline operations, reduce organizational layers, and increase ownership and innovation speed.
AI is described as the most transformative technology since the internet for Amazon, enabling faster innovation and decision-making. The company expects AI to replace some coordination, reporting, and decision-making tasks traditionally done by managers, particularly impacting middle management and director-level roles.
Laid-off employees were offered full pay and benefits for around 90 days, severance packages, outplacement services, and health insurance benefits during the transition period. Additionally, Amazon emphasized internal job placement efforts for affected employees.
The layoffs follow prior reductions in workforce during the previous years and are part of Amazon’s ongoing plan to become leaner, reduce bureaucracy, and shift resources toward strategic investment areas like generative AI and other high-priority growth initiatives.
Despite the layoffs, the company intends to continue hiring in key strategic roles in 2026 and beyond, focusing on AI and digital transformation to stay competitive and nimble.
These changes reflect Amazon’s ambition to operate like the world’s largest startup by eliminating unnecessary layers and fostering a culture of ownership and quick responsiveness to market changes.
In summary, Amazon’s 2025 layoffs are a calculated move to reshape its corporate workforce, leveraging AI to streamline decision-making and organizational efficiency while maintaining strong overall financial health and continuing targeted hiring where needed.
