The announcement that Amazon is targeting 30,000 layoffs is making headlines, and for good reason. Retail giant and technology company Amazon has announced that it plans to cut up to 30,000 jobs at the company – meaning employees working in headquarters or not in warehouses – in a bid to cut costs and increase efficiency. In this blog, I use clear language and real-world examples to explain what’s happening, why it’s important, and what the potential effects are.
Why is Amazon targeting 30,000 jobs to cut?
And oh yeah, when we say “Amazon targets 30,000 layoffs,” it just sounds like a number. But it’s much more than that. For context, Amazon has about 350,000 corporate employees worldwide, so 30,000 layoffs represent roughly 10% of the industry. This shows that Amazon believes that some of its functions – or roles – are no longer needed at their former scale.
Why now? There are a bunch of reasons for this:
After the pandemic, Amazon – and a bunch of large companies – hired aggressively. Guess what? Demand increased, spending increased. Now, with the increase in natural demand, they are starting to fall back.
You know what? Amazon CEO Andy Jassy aims, aims to reduce bureaucracy (too a bunch, bunch of layers of management) and automate more tasks with the help of artificial intelligence.
Some corporate employees are required to return to their office five days a week; Amazon found that not enough people showed up, and that may be one of the reasons for the discounts.
So the headline isn’t just about layoffs, it’s about how Amazon is transforming its operations.
How cuts can work in real life
Imagine working in an enterprise role at Amazon, such as HR or Hardware and Services. Amazon is said to be targeting divisions such as People and Technology Experience (PXT), Operations, Devices, and Services. What can happen?
For example, the remote work tools support team may be shut down because Amazon wants fewer managers and more automated tools. If you’re part of this team, you may receive an email on Tuesday morning notifying you that your role has been affected. Guess what? Afterwards, you may be able to discuss/advise how to leave. Amazon executives appear, appear to have received training on how to communicate with affected employees as of Monday.
You know what? Another example: Let’s say the product evaluation team that was busy during the pandemic is now quieter. Amazon may decide that machine learning tools can replace parts of the team, reducing the size of the team.
Like, for customers or people outside of Amazon, the change could mean fewer people answering service or support questions, or a slower rollout of new internal tools — but it could also potentially mean cost savings, which could lead to better pricing or investment in other areas (such as cloud computing).
What does this mean for industry and job seekers?
When a large company like Amazon cuts jobs, it sends signals across industries.
First, it shows that the big tech/retail companies think the “growth at any cost” model, model is dead. They are moving towards “smaller operations, more automation”. This could mean other companies follow suit.
Second, for job seekers: If you’re targeting corporate roles, roles at larger companies (HR, administration, services, operations), you need, need to focus, focus on skills that machines can’t easily replace—creativity, strategic thinking, relationship building, and leadership. It’s important to be good at using tools, but it’s becoming increasingly important to be able to do what AI can’t.
Third, if you’re already in a corporate position, it could be a sign that it’s time to rethink: Can you improve your skills? You know what? Can you transition to roles that are less likely to be automated or outsourced? For example, if your job is mostly procedural (doing repetitive tasks), you may be at greater risk than someone whose job involves innovation or high-value decisions.
You know what? The bigger picture: What is changing in work culture
Beyond the immediate numbers, Amazon’s move signals a broader shift in workplace culture. The company wants fewer, fewer layers of management and more direct and flat structures. Amazon has set up an anonymous complaint line to identify deficiencies, Jassy said. So far, they’ve received about 1,500 responses and made more than 450 changes to the process.
This suggests that companies are under pressure to:
Speed up the decision-making process
Use artificial intelligence and automation to reduce repetitive work.
Bringing workers, workers back to physical offices (or at least expecting more office hours)
Reducing the bureaucracy they consider unnecessary.
For a bunch of workers, this means that the focus shifts from “face-to-face” (just being there) to “results” (what it delivers). For companies, this means cost control, efficiency, and scaling automation.
What you can learn and apply
Whether you’re working for a company, thinking about joining a large company, or running, running your own business, here are some tips from Amazon’s ad:
If you work in a corporate role, consider how you can automate or streamline your role. For example, if you spend, spend a lot of time creating routine, routine reports, ask yourself: Can a dashboard or artificial intelligence do this? Start by pointing out how you can provide unique value.
If you’re a job seeker, focus on digital literacy and adaptability. Highlight how you use data tools, improve, improve processes, or drive change. For example, say you worked on a support team and implemented an AI-based chatbot that handled 30% of inquiries, freeing up human agents to do more complex work. This is an advantage.
If you’re running a business, be aware that even giant companies downsize when they feel the costs are too high or the structure too thick. So, review your own structure regularly: Do you have too a bunch of managers? Are you spending too much on tasks that add little, little value? For example, A small company may recognize that it has three levels of management, but only one core product team – it may be useful to flatten the hierarchy.
