Amazon is set to lay off 30,000 employees starting Tuesday as part of a move to cut costs and offset overhiring.
The cuts affect nearly 10% of Amazon’s 350,000 corporate employees — the largest reduction since 27,000 jobs were eliminated at the end of 2022, though they are only a fraction of the company’s 1.55 million total workforce.
Over the past two years, Amazon has made smaller job cuts across multiple divisions, including Devices, Communications and Podcasting.
The layoffs, which begin this week, are expected to affect several divisions of Amazon, including Human Resources (People Experience and Technology), Devices and Services, and Operations.
Managers of the affected teams were asked to undergo training on Monday on how to communicate with employees, before notices began being sent out via email tomorrow morning, the sources said.
Amazon shares rose 1.5% to $227.53, and the company is also scheduled to report third-quarter earnings on Thursday.
In addition, Amazon plans to hire 250,000 temporary workers during the festive season to meet increased demand.
Amazon Web Services (AWS) is also facing challenges in accelerating the launch of artificial intelligence (AI) products, with the CEO reprimanding staff for product delays.
