Layoffs aren’t over: Amazon CEO just got aggressive about cutting jobs

As Amazon continues its deep transformation into an AI-first enterprise, CEO Andy Jassy has made it clear: the layoffs aren’t over. In fact, the wave of job cuts may intensify as generative AI tools begin to replace traditional corporate functions at scale.

In his annual letter to shareholders and in a recent internal memo, Jassy didn’t mince words. “We will need fewer people doing some of the jobs that are being done today,” he wrote. “In the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”

The statement marks a significant shift in tone from previous layoff cycles, which were often attributed to post-pandemic cost recalibration. Now, Amazon is openly aligning job reductions with AI-fuelled operational overhaul—making it a deliberate and forward-looking strategy rather than a reactionary measure.

Amazon has already cut more than 27,000 roles since late 2022. In early 2025 alone, the company reportedly eliminated 14,000 managerial positions, amounting to 13% of its global corporate leadership, with projected savings of up to $3.6 billion annually.

According to The Verge and Wall Street Journal, teams across Alexa, Kindle, Prime Video, Twitch, HR and even its in-house communications functions have seen significant headcount reductions.

But what’s different now is the cause. In the past, layoffs were primarily about balancing budgets and correcting over-hiring during the pandemic boom. Today, it’s about automating jobs out of existence.

AI Isn’t Coming. It’s Here.

Jassy described generative AI as a once-in-a-generation leap akin to the rise of the internet. Amazon has already launched over 1,000 AI-powered tools and applications, many of which are designed specifically to reduce the need for manual effort.

Among them:

• Alexa+, a smarter voice assistant that goes beyond responses to take autonomous action
  
  

• A global AI shopping assistant used by tens of millions
  
  

• Features like “Lens”, “Buy for Me” and “Recommended Size” to automate purchasing and decision-making
  
  

• AI-based tools for sellers to auto-generate listings and campaign creatives
  
  

• Internal bots within AWS like Q and QCLI that now write and debug code
  
  

In warehousing and fulfilment, AI is also improving inventory forecasting, robot pathing and delivery speeds—all while reducing reliance on human intervention.

“Agents will let you tell them what you want… and do things like scour the web, write code, find anomalies, highlight insights… and automate a lot of tasks that consume our time,” said Jassy.

Tech Industry in Flux

Amazon’s aggressive AI push echoes broader patterns across the tech sector. As of mid-2025, more than 61,000 jobs have been eliminated across over 130 tech firms, including Google, Microsoft, IBM, and CrowdStrike, according to Times of India Tech.  Microsoft alone has cut nearly 6,000 roles, while Meta and Google continue to recalibrate hiring plans to align with their own AI ambitions.

“We’re going to keep pushing to operate like the world’s largest startup… customer-obsessed, inventive, fast-moving, lean, scrappy,” Jassy emphasised, indicating that AI will drive both innovation and workforce downsizing in tandem.

While AI may be making Amazon’s business smarter, faster and leaner, employees are feeling the impact. Some former staff, particularly those in operations and middle management, have expressed frustration at being viewed as “costs to cut” rather than contributors to innovation.

Unions and labour watchdogs are also raising concerns about the long-term implications of replacing functional teams with algorithms and bots—particularly in areas where human context, ethics, or creativity play a key role.