Amazon is reportedly planning to cut up to 30,000 jobs this week, according to sources cited by Reuters. This would be the largest mass layoff in the company’s 31-year history. The move is attributed to the online retail giant’s efforts to reduce expenses after overhiring during the COVID-19 pandemic, when it added 427,300 new employees between January and October 2020.
Amazon employs approximately 1.5 million workers worldwide, making it one of the largest employers in the US. The company’s previous largest layoff occurred between November 2022 and March 2023, when it cut 27,000 corporate jobs. This week’s layoffs will reportedly begin on Tuesday and target corporate employees, although it is unclear which specific roles will be impacted.
Earlier this month, Fortune reported that Amazon plans to cut up to 15 percent of its employees in human resources, which has over 10,000 employees globally. Amazon has not commented on the reports, and the company’s spokesperson has not responded to requests for confirmation.
The layoffs are part of a larger trend of cost-cutting measures at Amazon, which has faced challenges in recent months. The company has also been involved in labor disputes, including the reported firing of over 150 unionized drivers in New York last month. The union claimed that the firings were retaliatory, while Amazon maintains that the drivers are not its employees.
Amazon has also been exploring automation options, with the goal of replacing over half a million jobs with robots. According to a report by The New York Times, the company aims to automate 75 percent of its operations, including creating warehouses that employ only a small number of humans. However, an Amazon spokesperson stated that the internal documents cited by the Times do not represent the company’s overall hiring strategy.
Despite the layoffs, Amazon is still hiring, with plans to bring on 250,000 seasonal workers for the holiday season. These jobs are likely to be temporary, highlighting the ongoing shift in the company’s workforce. As Amazon continues to navigate the challenges of the post-pandemic economy, the impact of these layoffs on its employees and the broader job market remains to be seen.