E-commerce and tech giant Amazon is set to commence layoffs of around 14,000 jobs, effective October 28, a move aimed at reducing expenses and addressing "overhiring" that occurred during the COVID-19 pandemic, according to a Reuters report. Sources indicated that managers of affected teams underwent training on October 27 to prepare for communicating with staff following email notifications scheduled for October 28 morning (US time). A spokesperson for Amazon declined to comment on the layoffs.

Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, informed employees in a message that these reductions are a "continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we're investing in our biggest bets and what matters most to our customers' current and future needs," as reported by AP. Earlier reports from Reuters and Fortune had suggested that up to 30,000 corporate jobs could be on the chopping block at Amazon.

Amazon, which employs approximately 1.5 million people globally, has about 350,000 corporate employees, and these are the roles targeted for cuts. The job reductions are expected to span various divisions, including Amazon Web Services (AWS), the operations, devices and services division, and the human resources (People Experience and Technology or PXT) division. If the layoffs reach the higher estimate of 30,000, it would mark the company's largest reduction in workforce since late 2022, when 27,000 roles were eliminated. CEO Andy Jassy's leadership has seen smaller layoffs across departments like communications, devices, and podcasting over the past two years, with the current numbers potentially shifting based on financial priorities.

The current wave of layoffs is viewed as a crucial part of Amazon's cost-cutting strategy, focusing on calibrating "over hiring" in response to surging online demand and expansion projects during the pandemic. Jassy is reportedly committed to trimming "excess bureaucracy" by reducing managerial positions and implemented an anonymous complaint line, which has garnered around 1,500 responses and led to 450 process changes, identifying "inefficiencies" within the company.

A significant factor contributing to the layoffs is the company's back-to-office program, which two Reuters sources stated failed to generate sufficient attrition. This has led to some employees who did not adhere to the daily (five days working) swipe-in requirement being asked to voluntarily resign without severance. Furthermore, Jassy revealed in June that Amazon would increase its use of artificial intelligence (AI), stressing the importance of employees "embracing" this change. He stated, "… become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company. We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company."

Amazon's extensive job cuts align with a broader trend in the tech industry, where numerous companies are undergoing restructuring, often influenced by increased investment in AI. Overall, at least 81,445 jobs have been directly impacted due to AI-led restructuring across the sector. Other major tech firms also implementing significant job reductions include:

• Meta: On October 23, 600 roles were cut from Meta's artificial intelligence unit (Meta's Superintelligence Labs, MSL). Despite this, Meta plans to continue hiring for its AI teams and encouraged affected workers to apply for other internal positions.
• Google: In October, Google laid off 100 design department employees working on data, survey, and other tools to accelerate AI initiatives. This followed September's layoffs of over 200 contractors involved in training and refining AI projects like AI Overviews and Gemini.
• Microsoft: The software giant reportedly cut close to 4,000 jobs (over 40% of roles) in its software engineering business, with additional plans to cut nearly 6,000 jobs across divisions, including over 30% in Washington. These moves have raised concerns among software developers regarding the impact of AI.
• TCS (Tata Consultancy Services): TCS has laid off 6,000 employees globally this year and plans to cut another 6,000 jobs, totaling 2% of its workforce in fiscal years 2025-26, as part of restructuring and its push for AI adoption.
• Salesforce: CEO Marc Benioff confirmed in September that Salesforce had reduced its customer support workforce from 9,000 to 5,000 employees, attributing the 4,000 job cuts to the increased use of AI tools in customer service.
• Accenture: In October, IT consulting firm Accenture announced 11,000 global role reductions as it undertakes a major restructuring amid its AI push, with further job cuts potentially on the horizon.
• IBM: This year, IBM cut approximately 1,000 job roles as the company transitioned its focus towards hybrid cloud and AI businesses.
• Cognizant: The IT services company laid off 3,500 employees as part of efforts to simplify its organizational structure.
• Wipro: Indian IT firm Wipro reportedly slashed 24,516 jobs to enhance cost efficiency and productivity within the sector.
• Intel: In July, Intel Corp laid off 529 employees as part of a broader cost-cutting plan, with up to 20% of the chipmaker's staff potentially affected.