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Why is Amazon Laying Off Employees?

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In October 2025, Amazon announced another significant round of job reductions impacting approximately 14,000 corporate roles globally. This move, however, isn’t being described as just a cost-cutting exercise.

According to Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, these changes are a continuation of a broader organisational transformation aimed at making Amazon “operate like the world’s largest startup.”

The tech giant is reshaping its internal structure by reducing management layers, reallocating resources, and prioritising innovation.

Employees were informed that the changes would affect several departments, though the company also emphasised that hiring would continue in strategic areas such as artificial intelligence, logistics innovation, and AWS.

Why Is Amazon Making Changes While the Business Is Performing Well?

Why Is Amazon Making Changes While the Business Is Performing Well

Amazon’s financial performance in 2025 remains strong. The company continues to deliver solid customer experiences and maintains momentum in areas like AWS, advertising, and global retail. However, performance alone isn’t enough to keep pace with the accelerating demands of modern technology.

Galetti pointed out that the current wave of artificial intelligence is the most transformative shift since the invention of the internet. As a result, companies like Amazon need to adapt faster and with greater agility.

To do this, Amazon believes in becoming leaner and flatter reducing bureaucracy and empowering teams with more ownership.

This is why the restructuring is happening not in response to failure, but in anticipation of the future.

What Structural Changes Is Amazon Implementing?

The restructuring involves a deliberate shift towards:

  • Reducing organisational layers to streamline decision-making
  • Increasing internal ownership by team leads and managers
  • Removing bureaucracy that slows down innovation
  • Realigning resources toward high-priority, customer-centric initiatives

This mirrors Amazon’s ongoing efforts since 2023, where similar steps were taken to simplify structures and speed up delivery. Teams have reported increased agility and ownership, indicating that these efforts are already yielding positive cultural shifts inside the organisation.

How Are Employees Being Supported Through the Transition?

Amazon is taking several measures to support its workforce during this transition:

  • 90-day internal job search window for most affected employees
  • Priority consideration for internal roles by Amazon’s recruitment team
  • Severance pay and extended health benefits for those leaving the company
  • Career support and outplacement services to assist with external job opportunities

While the number of roles being cut is substantial, Amazon has stated that these decisions are being made with a clear focus on humanity and long-term sustainability, ensuring employees are treated with dignity and respect.

Which Areas Are Being Cut, and Where Is Amazon Hiring?

Which Areas Are Being Cut, and Where Is Amazon Hiring

The reductions span various departments, including human resources, media, and internal operations. Specific examples include:

  • Amazon Studios and Prime Video: Trimming less profitable productions
  • Corporate support roles: Reducing administrative overhead
  • Internal tech teams: Shifting headcount to AI-driven solutions

Conversely, Amazon is actively hiring in critical growth areas, including:

  • Artificial Intelligence & Machine Learning
  • AWS Cloud Infrastructure
  • Robotics and Automation in Fulfilment
  • Logistics Technology and Supply Chain Innovation

This dual movement, reducing in some areas and expanding in others, reflects a refined strategy rather than a blanket cut.

What Can Other Businesses Learn from Amazon’s Approach?

Amazon’s approach offers several lessons for large enterprises navigating similar transitions:

  • Change during growth: Layoffs aren’t always tied to poor performance; sometimes they’re about staying ahead
  • Cultural recalibration: Reinforcing accountability and agility within massive teams is crucial
  • Strategic clarity: Investment must be aligned with both current demand and future opportunity

Companies like Spotify and Salesforce have followed similar models, laying off employees while reinvesting in AI and automation, signalling a broader shift in how modern tech companies operate.

How Has Amazon’s Workforce Evolved Over the Years?

Amazon has long been recognised for its immense workforce scale. During the pandemic, the company hired aggressively, adding hundreds of thousands of workers to meet the surge in online shopping demand. In the UK alone, Amazon expanded its fulfilment centre workforce by over 25% between 2020 and 2022.

Now, in the post-pandemic world, the company is adapting to more stable growth rates, shifting away from rapid hiring toward targeted recruitment and long-term efficiency.

How Are Employees and Teams Responding?

How Are Employees and Teams Responding

Employee reactions have been mixed. While many understand the strategic intent behind the changes, uncertainty and concern remain, especially among those affected by job losses.

Internally, employees report:

  • Appreciation for transparent communication from leadership
  • Frustration about job security in unstable departments
  • Confidence in future-facing investments, such as AI and robotics

Amazon maintains that these transitions are designed to empower employees, reduce micromanagement, and accelerate team performance.

Amazon Layoffs 2025 – Summary Table

Date Key Change Areas Affected Estimated Roles Impacted
Jan 2025 Initial round of job cuts HR, media operations 5,000
Apr 2025 Strategic reallocation phase Corporate support, logistics 8,000
Oct 2025 Startup-style restructuring Internal tech, administration 14,000

What Does This Mean for the Future of Amazon?

Looking toward 2026, Amazon plans to continue hiring in strategic areas while identifying opportunities to further streamline operations and reduce inefficiencies. This is not a temporary restructuring, it’s a long-term transformation designed to prepare the company for a rapidly changing digital economy.

Amazon’s leadership remains confident in its ability to lead, innovate, and deliver better services by focusing on what matters most to customers. The changes are part of becoming faster, bolder, and more customer, obsessed values the company believes are central to its future success.

Frequently Asked Questions

Is Amazon reducing staff because of poor business performance?

No. Amazon is performing well financially. The job cuts are driven by structural changes, not falling revenue.

Why is Amazon adopting a “startup-like” approach?

The goal is to make Amazon leaner, faster, and more innovative, traits that startups excel at. This involves reducing layers and increasing team ownership.

Will there be more job cuts in 2026?

Amazon has indicated that structural reviews will continue, so more adjustments could happen if necessary — though they may be smaller in scale.

Are these layoffs only affecting the US?

No. Employees in the UK, Europe, and other global offices have been affected as part of this global restructuring.

What support is Amazon offering to laid-off employees?

Support includes a 90-day internal job search, severance packages, health coverage extensions, and career transition resources.

Which departments are still hiring?

Amazon is hiring in AI, AWS infrastructure, robotics, logistics technology, and customer experience innovation roles.

How are employees reacting internally?

There’s a mix of concern and optimism. Many appreciate the focus on long-term innovation, while others are understandably anxious about role security.

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