Amazon’s preparing to cut 14,000 corporate jobs this week, with reports suggesting the total could eventually reach 30,000. That’s roughly 4 per cent of its 350,000-strong corporate team getting pink slips as CEO Andy Jassy doubles down on AI and cost-cutting. The kicker? This isn’t just belt-tightening. It’s a strategic bet that generative AI can do what thousands of employees used to. If you’re in corporate tech, this one hits close to home.
Why Amazon’s Cutting Its Corporate Workforce
Let’s be clear: Amazon isn’t struggling. It’s restructuring. After a pandemic hiring binge that saw headcount explode, Jassy’s spent two years trimming the fat. Now, with AI tools hitting their stride, he’s going deeper.
The layoffs are expected to hit human resources, operations, devices and services, plus Amazon Web Services. That’s a broad sweep across some of the company’s core functions. Reuters reports cuts could start as soon as Tuesday, though Amazon’s keeping mum officially.
Amazon employs over 1.5 million people globally, including 75,000 in the UK. But these cuts are laser-focused on corporate roles, not warehouse workers. In fact, Amazon’s still hiring 250,000 seasonal staff for the holidays. Make that make sense.
AI’s Role in Amazon’s Restructure
Jassy hasn’t been shy about this. Back in June, he said generative AI would “change the composition of our corporate teams.” Translation? Some jobs are getting automated out of existence.
“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” he told investors. It’s the classic creative destruction argument, except this time it’s hitting white-collar roles hard.
Sky Canaves, senior analyst at eMarketer, chipped in: “This signals that Amazon is realising enough AI-driven productivity gains within corporate teams to support a substantial reduction in force.”
In other words, the robots are working. And they’re cheaper.
AWS Slowdown and Profit Pressures
Amazon Web Services remains the company’s cash cow, but even it’s showing signs of fatigue. AWS grew about 19 per cent year-on-year in Q3, which sounds good until you realise Microsoft’s Azure and Google Cloud are outpacing it.
That’s a problem. AWS bankrolls much of Amazon’s experimental projects, from devices to media. Slower growth there means less room for error elsewhere. Hence the cuts.
Amazon’s also been quietly dismantling smaller teams for months. Podcasting, communications, devices—all have seen reductions. Managers in affected departments have reportedly been trained to deliver the bad news as notices roll out.
UK Retail Struggles Add to the Pressure
It’s not just corporate. Amazon’s UK retail arm is floundering too. Last month, the company confirmed it’s shutting all 19 Amazon Fresh supermarkets, just four years after launching them.
Five locations will be converted into Whole Foods Markets. Staff are being offered alternative roles, but it’s another sign that Amazon’s ambitions don’t always match reality.
The Fresh closure is a rare public admission of failure for a company that usually pivots quietly. It also raises questions about Amazon’s broader retail strategy in markets outside the US.
What This Means for Tech Workers
If you’re in corporate tech, this should be a wake-up call. Amazon’s not alone in this. Meta, Google, Microsoft—they’ve all trimmed headcount over the past two years. The difference now is AI’s giving them cover to go deeper.
The roles getting axed aren’t just admin. They’re operations, HR, even parts of AWS. These are skilled positions being replaced by algorithms and automation tools.
On the flip side, Amazon’s still hiring. Just not for the same jobs. Cloud engineers, AI specialists, data scientists—those roles are growing. The labour market isn’t shrinking; it’s shifting.
Conclusion
Amazon’s 14,000-job cull (with reports suggesting up to 30,000 eventually) is a clear signal: AI isn’t just coming for manual labour anymore. Corporate roles are on the chopping block, and companies like Amazon are betting big on automation to drive margins. Whether this pays off long-term is anyone’s guess, but for now, the message is clear—adapt or get replaced. Keep an eye on Amazon’s quarterly earnings this Thursday for more clues on where this is headed.
FAQs
Q1: How many jobs is Amazon cutting in 2025?
A: Amazon has confirmed it will cut 14,000 corporate jobs, representing about 4 per cent of its 350,000-strong corporate workforce. Reports suggest the total could eventually reach up to 30,000. The layoffs are expected to begin this week and will hit multiple divisions including HR, operations, and AWS.
Q2: Why is Amazon laying off employees despite strong profits?
A: The layoffs are part of a strategic restructure driven by AI productivity gains and cost management. CEO Andy Jassy has stated that generative AI is changing the composition of corporate teams, allowing Amazon to operate more efficiently with fewer employees in certain roles.
Q3: Will Amazon’s warehouse workers be affected by the layoffs?
A: No, these cuts are focused on corporate roles, not warehouse staff. In fact, Amazon is hiring 250,000 seasonal warehouse workers globally to prepare for the holiday shopping period.
Q4: What’s happening with Amazon Fresh in the UK?
A: Amazon is closing all 19 of its Amazon Fresh supermarkets in the UK, four years after launching the chain. Five locations will be converted to Whole Foods Markets, and affected staff are being offered alternative roles within the company.
Q5: How is AWS performing compared to competitors?
A: AWS grew approximately 19 per cent year-on-year in Q3, which is solid but trails behind Microsoft’s Azure and Google Cloud in growth rates. AWS remains Amazon’s biggest profit centre, but the slower growth has added pressure to cut costs elsewhere.
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Effective Date: 15th July 2025
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