Amazon’s Second Layoff Wave: Chasing 30,000 Cuts in Bureaucracy Purge

Amazon.com Inc. is bracing for another wave of corporate layoffs next week, aiming to slash thousands more jobs as it pursues a target of 30,000 reductions in its white-collar ranks. This follows the elimination of about 14,000 positions in October, marking the e-commerce giant’s most aggressive workforce trimming since the post-pandemic retrenchment of 2022. Sources familiar with the plans told Reuters the new cuts could begin as early as Tuesday and match the scale of the prior round.

The moves reflect Chief Executive Andy Jassy’s determination to dismantle layers of management and restore the lean ethos that propelled Amazon’s early growth. Spanning units from Amazon Web Services to Prime Video and retail operations, the reductions target mid-level managers and support staff seen as bloating decision-making processes. A company spokesperson declined to comment, consistent with past practice ahead of such announcements.

Internal memos and employee posts on X underscore the tension. One Amazon worker described receiving layoff notices in October with 90 days of severance, noting impacts across all organizations under the banner of ‘staying nimble.’ Posts found on X from insiders echo expectations of 15,000 additional cuts in January, amplifying Reuters’ reporting.

Roots in October’s Initial Strike

The October cuts, confirmed by Amazon, hit roughly 14,000 roles globally, with vows of more to come in 2026 to ‘remove layers.’ Reuters detailed how artificial intelligence adoption fueled the shakeup, automating tasks once handled by corporate staff. Jassy framed it as streamlining for speed, not cost-cutting amid strong financials—Amazon’s 2025 revenue topped $600 billion.

Analysts point to overstaffing from the pandemic hiring surge. Amazon ballooned to over 1.5 million employees by 2021, then shed 27,000 in 2022. Now, with corporate headcount at around 300,000, a 10% trim aligns with peers like Meta Platforms Inc. and Alphabet Inc., which culled thousands in prior years to boost efficiency.

Targets Across the Empire

The Puget Sound Business Journal reported the latest round builds on October’s actions, potentially axing thousands more from Seattle’s headquarters. Puget Sound Business Journal sources indicate hits to human resources, operations, and product teams, with AWS—Amazon’s profit engine—feeling the brunt alongside consumer divisions. One X post highlighted CEO Jassy attributing cuts to ‘culture & bureaucracy,’ not AI or finances alone.

Employees in affected roles face severance packages mirroring October’s: 90 days pay plus benefits. Legal filings in Washington state reveal patterns of performance-based exits preceding mass reductions, drawing scrutiny from labor advocates. The Communications Workers of America has monitored Amazon’s labor practices, though no strikes have materialized over these cuts.

Financially, Amazon stock dipped 1.2% on the Reuters report, but year-to-date gains exceed 20% on AWS growth and AI investments. Jassy’s annual letter to shareholders emphasized flattening hierarchies to mimic startup agility, a theme reiterated in all-hands meetings.

AI’s Shadow Over Headcount

Behind the bureaucracy rhetoric lies AI’s inexorable advance. Reuters noted tools like Amazon’s internal coding agents and warehouse robots reducing human needs. A Hindustan Times piece detailed how the cuts aim to counter ‘job disruption’ from such tech, affecting young workers in tech, HR, and support.

The Guardian reported Amazon’s October confirmation of 14,000 cuts as reversing pandemic hires, with more expected. The Guardian highlighted cost-slimming efforts amid competition from Walmart and Shopify. X sentiment reflects anxiety, with users decrying buzzwords masking harsh realities.

Comparisons to past cycles sharpen the picture. In 2022, Amazon cut 18,000 then 9,000 more, per X posts from that era. Today’s round, per sources, seeks permanence through organizational redesign, not temporary fixes.

Seattle’s Economic Ripples

Seattle, Amazon’s fortress, bears the impact. The Puget Sound Business Journal chronicled headquarters morale dips, with real-estate vacancies rising. Local economists forecast short-term housing pressure relief but long-term talent drain to rivals like Microsoft Corp.

Recruiters note a bifurcated market: junior roles scarcer, senior positions open for efficiency experts. LinkedIn data shows Amazon layoff mentions spiking 300% post-October, per web searches. Jassy’s push for ‘ownership’ culture demands faster innovation, pressuring remaining staff.

Investor Calculus and Road Ahead

Wall Street views the purge favorably. JPMorgan analysts raised price targets, citing margin expansion potential. Amazon’s Q4 2025 earnings beat estimates, with operating income up 40%, buoyed by AWS’s 19% growth.

Yet risks loom: talent flight to OpenAI or Anthropic, where ex-Amazonians build rivals. Regulatory eyes from the FTC intensify amid antitrust probes. Sources to CNA confirm the 30,000 goal, with cuts through mid-2026.

Employee forums buzz with survival tips: upskilling in AI, networking externally. As notifications loom next week, Amazon’s transformation tests its ability to reinvent amid prosperity—a stark reminder that even giants must evolve.