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Amazon has initiated the largest round of job cuts in its history, beginning Tuesday morning, October 28, 2025, with up to 30,000 corporate employees being notified of their termination via email. The layoffs, representing nearly 10% of Amazon’s 3.5 lakh corporate workforce, come as part of CEO Andy Jassy’s continued cost-cutting strategy amid record investments in artificial intelligence (AI) infrastructure. According to Reuters, managers received urgent training on Monday, October 27, to prepare for the layoffs and were instructed on how to communicate the decision to affected employees. Internal documents and multiple media outlets confirmed that the notifications were rolled out the following morning. HR division faces the steepest cuts The layoffs span several key divisions including People Experience and Technology (PXT), operations, devices and services, and Amazon Web Services (AWS). Sources told Reuters that the HR division — internally referred to as PXT — is facing the deepest reductions, with as much as 15% of its staff expected to lose their jobs. This could amount to thousands of positions out of the unit’s more than 10,000 employees worldwide.A Fortune report revealed that while the company is trimming workforce costs, it continues to pour resources into AI expansion, with more than USD 100 billion invested in AI infrastructure this year alone. Managers trained ahead of layoffs In an unusual move, Amazon’s management team conducted mandatory training sessions just hours before the layoffs were announced. These sessions aimed to equip managers with communication strategies for breaking the news to affected team members.“Managers were instructed to be direct, empathetic, and concise,” one source familiar with the discussions told Reuters. The internal guidance reportedly included detailed instructions on follow-up communication, severance details, and next steps for terminated employees. Severance and internal communication Leaked internal messages viewed by Business Insider indicate that employees in the United States, United Kingdom, and Canada are among those most affected. A draft severance letter promised 90 days of full pay and benefits following the termination date, providing a temporary financial cushion as displaced workers look for new opportunities.Amazon has already eliminated 27,000 positions since late 2022 through previous rounds of restructuring, but this round surpasses all previous reductions combined. Return-to-office policy under scrutiny The decision follows an internal review of Amazon’s strict return-to-office policy, which requires employees to work from the office five days a week. The company had reportedly hoped that this mandate would lead to voluntary resignations, thereby reducing headcount naturally. However, sources told Reuters that attrition remained far lower than expected, compelling Amazon to implement direct layoffs.In addition, Jassy’s efficiency campaign aims to flatten the company’s management structure. According to internal reports, the company launched an anonymous feedback platform that has received over 1,500 employee responses in recent months, highlighting widespread concerns about morale, workload, and communication. AI investments reshape priorities The layoffs come at a time when Amazon is aggressively shifting focus towards artificial intelligence, cloud computing, and automation. The company is betting heavily on AI infrastructure to power its AWS business, retail algorithms, and logistics operations.While cost-saving remains a key motive, analysts say the job cuts also signal a structural transformation. “This is not just cost-cutting; it’s reallocation of resources toward high-growth AI initiatives,” said a tech industry expert quoted by Fortune. Hiring spree in warehouses continues Despite the corporate downsizing, Amazon is simultaneously expanding its seasonal workforce. The company announced plans to hire 2.5 lakh temporary warehouse and logistics workers globally for the upcoming holiday shopping season — a move aimed at ensuring smooth operations during peak demand. With this massive layoff round, Amazon has now cut more than 57,000 jobs since late 2022, underscoring a significant shift in the company’s workforce strategy. While the move is expected to streamline operations and align investments with future technologies, it also raises questions about employee morale and the broader impact on the global tech labour market.Industry watchers believe that this restructuring could serve as a model for other tech giants seeking to balance AI investment with operational efficiency
