Amazon is preparing to eliminate 14,000 corporate positions as part of a broader corporate restructuring aimed at streamlining operations and removing management layers, according to recent internal directives.
Financial Performance Amidst Layoffs
The workforce reduction comes despite strong financial growth; the company reported a 13% revenue increase to $167.7 billion in the second quarter compared to the previous year. Within this growth, AWS remains a critical pillar, accounting for 18% of total net sales.
Scale of the Restructuring
While the confirmed figure stands at 14,000, reports from Reuters on Monday suggested the company was weighing even more significant reductions, potentially slashing up to 30,000 jobs. These cuts are expected to span multiple sectors, including human resources, devices and services, operations, and several other internal departments.
This move follows a series of smaller, targeted reductions throughout the year. As recently as January, Amazon trimmed staff counts within its Communications and Sustainability departments.
Support for Impacted Employees
Amazon has outlined a transition plan for those affected by the layoffs. The company is offering most impacted employees a 90-day window to secure new roles internally, with recruiters instructed to prioritize internal candidates for any existing vacancies. For staff members unable to transition to new positions within the company, Amazon will provide severance packages, outplacement assistance, and continued health insurance benefits.
Looking Ahead to 2026
Looking toward the next fiscal year, internal communications from Galetti indicate that 2026 will see a continued focus on removing organizational layers to “realize efficiency gains.” Despite these cutbacks, the company maintains that it will simultaneously continue to pursue strategic hiring in key growth areas.
