Amazon Reportedly Poised for Sweeping Corporate Job Cuts Starting Tuesday
The tech world is certainly abuzz this morning with news that Amazon is reportedly gearing up to announce significant corporate job reductions, set to begin as early as Tuesday, October 28, 2025. CNBC broke the story on Monday, citing internal sources and memos, signaling a new round of "sweeping corporate job cuts" across several key divisions. This development comes as the e-commerce and cloud computing behemoth continues its relentless pursuit of efficiency, deeply entwined with massive investments in artificial intelligence and automation.
The Scale and Scope of Reported Reductions
What exactly are we looking at here? Sources suggest these cuts could impact anywhere from 10,000 to 15,000 corporate positions globally. That’s a significant number, even for a company of Amazon's colossal scale, representing roughly 1 to 1.5% of its entire global workforce of about 1.5 million. The affected roles are expected to span crucial departments, including the highly profitable Amazon Web Services (AWS), the core retail division, and various operations teams. It's a stark reminder that even with booming sales, the push for lean operations never truly stops.
This isn't Amazon's first rodeo with large-scale layoffs, of course. We saw substantial "rightsizing" efforts in 2023 and early 2024, which ultimately saw over 27,000 roles eliminated following a pandemic-fueled hiring spree. These new, if confirmed, reductions appear to be a continuation of that trend, but with a sharper focus on corporate layers. While Amazon has yet to issue an official statement on these specific reports, the timing aligns with a pattern of major corporate announcements often made on Tuesdays. Employees, particularly in the Seattle and Arlington headquarters, are reportedly bracing for impact, with some internal forums already flooded with anxieties.
The Driving Forces: AI, Efficiency, and Economic Headwinds
So, what's behind this latest move? Analysts are pointing to a confluence of factors. Primarily, Amazon's aggressive pivot towards AI and automation is a huge one. The company is pouring tens of billions into AI infrastructure—we’re talking about an estimated $60 billion in AI capital expenditure this year alone. While Amazon recently announced its "Future Ready 2030" initiative, committing $2.5 billion to upskill 50 million people for future jobs in AI and cloud computing, it seems, that this push for efficiency through automation is also displacing current roles. It’s an interesting dichotomy, isn't it? Investing in future skills while simultaneously shedding existing ones.
Experts like Wedbush Securities' Dan Ives aren't seeing this as a sign of distress, but rather "efficiency." Amazon's Q3 2025 earnings showed net sales up 11% year-over-year, but also highlighted rising AI infrastructure costs. These cuts, if they materialize as reported, are projected to save Amazon an estimated $1.2 to $1.8 billion annually, a figure that certainly looks attractive to shareholders. It’s a trend we’re observing across Big Tech in 2025; Intel just announced 5,000 cuts, and Microsoft too saw significant reductions, all against a backdrop of continued high inflation and economic uncertainty.
Market and Employee Sentiment
The initial market reaction has been relatively muted. Amazon shares saw a slight dip in pre-market trading, but nothing indicative of major investor panic. In fact, many investor forums are buzzing with optimism, recalling how previous layoff announcements often preceded periods of stock growth. For employees, however, the sentiment is far more somber. Anonymous forums like Blind and Reddit's r/AmazonEmployees are reporting widespread anxiety, with fears of significant team reductions, especially within AWS. One can't help but feel for those bracing for difficult news.
Internationally, the impact could be regional. Reports suggest that while the U.S. will bear the brunt, Europe (particularly the UK and Germany) might see slower, more staggered cuts due to stricter labor protections. Unions in Germany, for example, have already voiced their intent to "fight any unjust cuts." Meanwhile, rapidly growing markets like India and Asia-Pacific may experience minimal reductions, as Amazon looks to maintain its expansion efforts there.