TLDR
- Amazon plans to cut roughly 14,000 corporate jobs starting next week, bringing total layoffs to approximately 30,000 employees
- The cuts affect AWS, retail, Prime Video, and HR departments, representing nearly 10% of Amazon’s 350,000 corporate workforce
- CEO Andy Jassy says the layoffs are driven by reducing bureaucracy and management layers, not financial stress or AI replacement
- This would be Amazon’s largest layoff cycle ever, surpassing the 27,000 jobs cut in 2022
- Wall Street analysts remain bullish with a Strong Buy rating and see 26% upside potential ahead of Amazon’s February 5 earnings report
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Amazon is preparing to cut approximately 14,000 more corporate jobs starting as early as next week. This marks the second wave of a broader plan to reduce its white-collar workforce by 30,000 employees.
Amazon.com, Inc., AMZN
The company already eliminated about 14,000 positions in October. With the upcoming cuts, Amazon’s total job reductions would reach 30,000 employees. That’s the largest layoff cycle in the company’s three-decade history.
The cuts will hit several key divisions. Amazon Web Services, retail operations, Prime Video, and the People Experience and Technology team will all see reductions. The full scope remains unclear and details could still change.
Amazon’s corporate workforce stands at around 350,000 people. The 30,000-person reduction represents roughly 8.5% of that group. When viewed against Amazon’s total workforce of 1.57 million employees, including warehouse and logistics staff, the cuts appear more modest.
CEO Andy Jassy has been direct about why this is happening. He says it’s not about money or AI taking jobs. Instead, it’s about company culture and cutting bureaucracy.
“You end up with a lot more people than what you had before, and you end up with a lot more layers,” Jassy told analysts during the company’s third-quarter earnings call.
Clearing Out Management Layers
Amazon grew rapidly between 2017 and 2022. That growth brought extra management layers that the company now wants to eliminate. HR chief Beth Galetti described the October layoffs as shifting resources toward Amazon’s “biggest bets,” with artificial intelligence at the top of that list.
Some speculation points to AI-driven automation playing a role. Software engineers in Washington state were hit hard in last year’s cuts. But Jassy pushes back on the idea that AI is directly replacing workers.
The reality likely sits somewhere in the middle. Amazon invests billions in AI infrastructure, data centers, and chips while maintaining cost discipline elsewhere.
What This Means for Investors
The stock market’s reaction will probably be muted. Layoffs of this nature won’t materially change Amazon’s revenue trajectory or long-term growth prospects. Investors care more about what happens on February 5 when Amazon reports earnings.
AWS performance will be the main focus. Renewed optimism around AI-driven demand has improved sentiment after a choppy year. That earnings report matters far more than job cuts.
Wall Street analysts remain confident. The consensus rating sits at Strong Buy with 46 of 47 analysts giving the stock a Buy rating. Only one analyst holds a Hold position.
The average 12-month price target stands at $294.45. That implies roughly 26% upside from current levels. Analysts see value despite the headlines about layoffs.
Workers affected by the October cuts were given 90 days on the payroll to find internal positions or seek other employment. That period expires on Monday, just as the next wave begins.
