In a strategic pivot that underscores its intensified focus on financial discipline, Amazon has announced a hiring freeze for its retail division in 2025, following the elimination of 27,000 roles over the past 24 months. The move, revealed through an internal memo obtained by Business Insider, reflects a significant shift from Amazon’s long-standing headcount-driven expansion model to a budget-focused hiring framework.

The policy applies to all corporate roles within Amazon’s sprawling retail ecosystem, including its online marketplace, logistics operations, and Amazon Fresh grocery business. However, the freeze does not affect warehouse roles or positions within Amazon Web Services (AWS), the company’s high-margin cloud computing segment.

According to the internal memo, any new corporate hires will now require “strong supporting reasons” and will be subject to rigorous review. Rather than hiring to meet numerical targets, Amazon is giving managers fixed financial budgets, requiring them to prioritise staffing based on cost-efficiency and business necessity. The model also encourages the use of temporary and contract labour where appropriate.

This policy represents a marked departure from Amazon’s previous growth era, where teams expanded rapidly to support increasing consumer demand. By transitioning to a leaner, budget-driven structure, Amazon aims to promote flexibility, reduce redundancy, and maintain profitability during fluctuating economic conditions.

Zoe Hoffman, an Amazon spokesperson, told Business Insider that hiring has not come to a complete halt. “Each business unit evaluates its hiring needs independently,” she said, emphasising that roles critical to growth will still be considered. Hoffman framed the new approach as “a responsible strategy for managing growth at Amazon’s vast scale.”

The hiring freeze aligns with a broader efficiency agenda spearheaded by CEO Andy Jassy, who took the reins from founder Jeff Bezos in 2021. Under Jassy, Amazon has undertaken extensive restructuring: cutting thousands of jobs, flattening organisational hierarchies, and revamping employee compensation structures.

The results have been striking. In 2024, Amazon posted a record $59 billion in profit, nearly double the figure from the previous year. Much of this financial success has been attributed to aggressive cost-cutting measures, operational streamlining, and focusing investment on high-performing areas such as AWS.

Retail CEO Doug Herrington has signalled that further budget reductions are expected in 2025. In a recent internal meeting, he emphasised the importance of continued financial prudence to free up capital for Amazon’s new initiatives and emerging market ventures.

While warehouse and AWS roles remain unaffected, the freeze could significantly slow hiring momentum across Amazon’s retail leadership, programme management, and corporate support roles. Recruiters and hiring managers will need to justify each position based on clear business value.

For current employees, the new policy reinforces an ongoing shift in company culture—one that favours agility, cross-functional responsibilities, and leaner team structures. In effect, Amazon is betting that doing more with less will help sustain its competitive edge in an increasingly demanding global market.

At the same time, the flexibility afforded to business units could allow managers to tap into temporary staffing models or outsource specific functions, particularly in seasonal or project-based roles. This could create short-term opportunities while minimising long-term cost commitments.