AI Productivity Gains Drive Amazon's 30,000-Employee Layoff as CEO Jassy Slashes Management Bureaucracy

Brief by Shorts91 Newsdesk / 05:14am on 28 Oct 2025,Tuesday Business

Amazon plans to lay off 30,000 corporate employees starting Tuesday, representing nearly 10% of its 350,000-strong corporate workforce, Reuters reports. The cuts address pandemic overhiring and expense reduction while capitalizing on AI-driven productivity gains. This marks Amazon's largest job reduction since eliminating 27,000 positions in late 2022. Affected divisions include human resources (People Experience and Technology), devices, services, and operations. Managers received Monday training for communicating the news via Tuesday email notifications. CEO Andy Jassy previously announced plans to reduce bureaucracy and management layers, noting in June that AI adoption would likely trigger additional cuts. eMarketer analyst Sky Canaves suggests the move reflects realized AI productivity gains offsetting AI infrastructure investments.

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