Amazon’s cost cuts deepen with 700 New York layoffs and fresh legal scrutiny

Amazon is laying off nearly 700 corporate employees based in New York City as part of its broader restructuring plan affecting around 14,000 staff globally, Crain’s New York reported. The layoffs, disclosed in a filing with the New York State Department of Labor, will impact 660 employees across nine offices, with the largest cuts hitting the company’s Manhattan West and New York Tech Hub locations.

The company confirmed the move in an emailed statement, saying it forms part of ongoing efforts to operate more efficiently. “All employees whose roles were eliminated (including in New York) were notified that day [October 28],” Amazon said.

Beth Galetti, Amazon’s senior vice-president of people experience and technology, said in a memo that the restructuring was designed to make the company “more leanly organised, with fewer layers and more ownership, to move as quickly as possible for our customers and business.”

Affected employees will receive a 90-day notification period, a lump sum for healthcare costs, severance pay, and access to free skills training and job support services, Amazon said.

The cuts add to the wave of job reductions across Amazon’s global corporate workforce since 2023, as the company continues to trim divisions and consolidate roles after a period of rapid pandemic-era expansion.

Lawsuit over workplace absence policy

The layoffs came as Amazon was sued in a proposed class-action case filed in a New York federal court, accusing the company of enforcing “punitive attendance policies” that allegedly penalise workers for taking legally protected time off.

The complaint, filed by former employee Cayla Lyster and supported by the nonprofit legal advocacy group A Better Balance, claims Amazon’s automated attendance tracking system threatens workers with discipline or termination when they request disability-related or family-care accommodations.

“Under this system, employees live under constant threat of punishment if they get sick or injured or need time off to care for a family member,” the lawsuit states. It alleges violations of the Americans with Disabilities Act and two New York State laws governing disability discrimination and workplace absence.

Inimai Chettiar, president of A Better Balance, said the company’s policies “force workers to choose between their safety and their paycheck.”

Lyster, who joined Amazon in 2022 and has a genetic connective-tissue disorder, claims she was denied timely accommodation — including a chair to sit on — and faced disciplinary threats while waiting for her request to be approved. She is seeking compensatory and punitive damages, along with a jury trial.

In an emailed response to CBS News, Amazon rejected the allegations. “Claims that we don’t follow federal and state laws like the Americans with Disabilities Act and New York State Human Rights Law are simply not true,” the company said. “Ensuring the health and well-being of our employees is our top priority.”

The company added that its dedicated accommodations team “reviews each request individually” and continuously refines its policies to better support employees’ needs.

Broader scrutiny of workplace culture

The lawsuit follows a five-year investigation by A Better Balance, which said it had documented hundreds of cases involving pregnant or disabled workers who faced challenges when requesting leave or workplace adjustments.

The case could intensify scrutiny of Amazon’s workplace practices, particularly after a series of past complaints regarding its warehouse conditions and employee treatment.

While Amazon continues to streamline its global operations, the twin developments — layoffs in a major U.S. hub and a fresh legal challenge — highlight the company’s ongoing struggle to balance efficiency drives with employee welfare and compliance obligations.