TLDR
- Amazon set to cut approximately 14,000 more corporate jobs next week, reaching 30,000 total workforce reductions
- AWS, retail, Prime Video, and HR divisions face layoffs as company targets management layer reduction
- CEO Andy Jassy says cuts address organizational bloat from 2017-2022 growth period, not financial troubles
- Layoffs represent 8.5% of corporate staff but under 2% of Amazon’s 1.57 million total employees
- Wall Street maintains Strong Buy rating with average price target suggesting 26% upside potential
Amazon is preparing to eliminate around 14,000 more corporate positions starting next week. This second phase will bring total job cuts to approximately 30,000 employees.
The e-commerce giant already reduced its workforce by 14,000 positions in October. The new round is expected to match that scale and could launch as soon as Tuesday.
Multiple divisions will experience reductions. Amazon Web Services, retail, Prime Video, and the People Experience and Technology unit will all see cuts. Sources say full details remain fluid and could still change.
This marks Amazon’s largest workforce reduction ever. Previous layoffs in 2022 totaled 27,000 positions across several rounds.
Understanding the Scale
Amazon’s corporate employee base stands at roughly 350,000 workers. The planned 30,000 cuts represent about 8.5% of that group.
Context matters when examining total impact. Amazon employs 1.57 million people when including warehouse and fulfillment center staff. From that view, the reductions affect less than 2% of the workforce.
CEO Andy Jassy has explained the company’s thinking. Speaking on a third-quarter earnings call, he dismissed financial pressure or AI automation as primary drivers.
“It’s culture,” Jassy said. The company added too many management layers during its rapid expansion from 2017 to 2022. Those extra layers now create bureaucracy the company wants to eliminate.
The AI Factor
Questions persist about artificial intelligence’s role in these decisions. Software engineering positions took heavy hits during last year’s Washington state cuts.
Jassy denies AI is directly replacing workers. But he previously indicated the corporate workforce would likely shrink over time as AI creates efficiencies.
Amazon pours billions into AI development. The company invests heavily in data centers, custom chips, and AI infrastructure. HR chief Beth Galetti described October’s cuts as shifting resources toward Amazon’s top priorities, with AI leading that list.
What Investors Should Watch
These layoffs aren’t changing Wall Street’s outlook. Analysts see more important factors ahead for the stock.
February 5 brings Amazon’s next earnings report. That matters far more than job cuts. Investors want AWS performance data, particularly around AI-driven growth acceleration.
The analyst community remains confident. Strong Buy is the consensus rating with 46 of 47 analysts recommending purchase. One analyst maintains a Hold position.
Price targets point upward. The average 12-month forecast reaches $294.45. That implies about 26% upside from recent trading levels.
Employees affected in October received 90-day notice periods. They could search for internal opportunities or seek external positions while remaining on payroll. That window closes Monday as the next wave begins.
