Amazon is preparing to cut as many as 30,000 corporate jobs beginning Tuesday, as part of its efforts to streamline operations and offset overhiring during the pandemic’s e-commerce boom, according to multiple people familiar with the matter.

The figure, while a small portion of Amazon’s 1.55 million global employees, represents nearly 10% of its 350,000 corporate workforce. The layoffs would be Amazon’s largest job reduction since late 2022, when the company eliminated around 27,000 positions.

An Amazon spokesperson declined to comment on the planned layoffs.

Multiple divisions likely to be impacted

Sources said the cuts will affect several divisions, including human resources (People Experience and Technology or PXT), operations, devices and services, and Amazon Web Services (AWS). Managers of affected teams reportedly received training on Monday to prepare for staff notifications beginning Tuesday morning.

Over the past two years, Amazon has already reduced headcount in smaller waves across units such as devices, communications, and podcasting. However, this latest round is expected to be broader and deeper.

Push to reduce bureaucracy, enhance efficiency

CEO Andy Jassy has led an initiative to reduce corporate bureaucracy and simplify management layers. Earlier this year, he introduced an anonymous complaint line for employees to flag inefficiencies, resulting in 1,500 submissions and over 450 process changes.

Jassy has also acknowledged that artificial intelligence tools are playing a growing role in automating repetitive tasks, potentially contributing to further job reductions.

“This latest move signals that Amazon is realizing enough AI-driven productivity gains within corporate teams to support a substantial reduction in force,” said Sky Canaves, an eMarketer analyst.

HR division, remote workers particularly affected

Reports suggest the human resources division could face cuts of around 15%, according to Fortune. Additionally, Amazon’s return-to-office policy, requiring employees to be in the office five days a week, has not led to the level of attrition the company expected.

Two sources said some remote employees, particularly those living far from corporate offices, are being told they “voluntarily quit” for non-compliance—meaning they must leave without severance, helping the company save costs.

According to Layoffs.fyi, nearly 98,000 tech jobs have been lost so far in 2025 across 216 companies, compared to 153,000 total job cuts in 2024. Amazon’s latest move adds to a continuing wave of corporate downsizing in the technology sector.

AWS growth slows, faces outage impact

Amazon’s largest profit center, AWS, posted $30.9 billion in second-quarter sales, up 17.5%, but trailing growth seen at Microsoft Azure (39%) and Google Cloud (32%). Third-quarter estimates indicate sales of $32 billion, an 18% increase, slightly below last year’s 19%.

AWS also recently suffered a 15-hour internet outage, disrupting major online services such as Snapchat and Venmo, further pressuring performance.

Holiday hiring, diversity reorganization continue

Despite the corporate layoffs, Amazon expects another strong holiday season and plans to hire 250,000 seasonal workers, consistent with previous years.

Last Friday, Amazon also announced a reorganization within its PXT unit, particularly in its diversity initiatives segment, according to a memo reviewed by Reuters. The changes largely involved internal promotions and restructuring.

Amazon’s shares rose 1.2% to $226.97 on Monday ahead of the company’s third-quarter earnings report on Thursday.

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Paramount Skydance also announces job cuts

Separately, Paramount Skydance plans to lay off about 1,000 employees on Wednesday following the $8.4 billion merger between Skydance Media and Paramount Global. The reduction represents roughly 5% of its workforce.

As of December 2024, Paramount employed nearly 18,600 full- and part-time workers, along with 3,500 project-based staff. The layoffs come just days after reports that Warner Bros Discovery’s board rejected a $60 billion offer from Paramount Skydance, though analysts still view David Ellison’s firm as the leading acquisition contender.