Winning Bizness Desk
Mumbai.Amazon has announced another major round of job cuts, saying it will lay off 16,000 more employees as part of its ongoing restructuring drive. With this decision, the total number of office workers to be shown the door has risen to 30,000, making it the company’s biggest layoff exercise since 2023. The move comes months after Amazon, the world’s largest e-commerce company, had said in October last year that it would eliminate 14,000 positions. The fresh cuts underline the scale of internal changes underway as the company looks to reshape its workforce and business priorities amid a challenging global environment.
Reason behind expanding workforce restructuring plan
The latest round of layoffs is a continuation of the restructuring process that began in October. At that time, Amazon had indicated that the job reductions were aimed at making the organisation leaner and more efficient. However, with the addition of 16,000 more roles now being cut, the total impact has become far larger than initially projected. According to company insiders, the decision reflects a deeper reassessment of how teams are structured and how work gets done across the organisation.
The focus of the layoffs will largely remain on corporate and office-based roles rather than frontline operations. Amazon has clarified that employees working in warehouses and its vast distribution network will not be affected by this decision.
Company targets fewer layers of management
Senior Vice President Beth Galetti said in an official statement that the primary objective of the job cuts is to reduce layers of management within the company. She said Amazon wants to increase individual responsibility, cut internal bureaucracy and enable faster decision-making.
According to the company, the restructuring is expected to help teams respond more quickly to customer needs and boost innovation. Galetti said simplifying internal processes would allow employees to focus more on building new products and improving services rather than navigating complex approval systems.
Biggest office layoff since post-pandemic cuts
This is Amazon’s largest workforce reduction since the post-pandemic layoffs of 2022 and 2023, when around 27,000 employees lost their jobs following a rapid expansion during the Covid-19 years. Media reports suggest that this round of layoffs will again mainly impact white-collar and office employees.
Key facts related to the scale of layoffs include:
- Amazon employs around 3.5 lakh office workers globally.
- Nearly 10 percent of this office workforce, about 30,000 people, will be affected.
- Around 15 lakh employees working in warehouses and logistics will remain unaffected.
- The cuts are spread across regions, though exact locations are yet to be disclosed.
AI investments drive shift in strategy
Industry experts believe Amazon’s growing focus on artificial intelligence is a major factor behind the changing workforce strategy. When reports of layoffs first surfaced in October, the company had declined to comment. However, analysts say Amazon is rapidly increasing investment in AI-driven technologies and automation.
As part of this shift, teams are being reviewed regularly to assess efficiency and relevance. The company said on Wednesday that every team will continue to evaluate its capabilities, and changes will be made wherever required to align with long-term goals.
Annual results may bring more clarity
Amazon has not yet revealed which departments will see the maximum impact or how the layoffs will be phased. More details are expected when the company announces its full-year financial results on February 6, 2025.
What to watch in the coming weeks:
- Department-wise breakup of job cuts.
- Impact on ongoing projects and teams.
- Amazon’s future hiring plans.
- Management commentary during the live earnings call.
The upcoming results presentation and conference call are expected to offer clearer signals on Amazon’s roadmap and how deeply these changes will reshape the company’s workforce in the years ahead.
