TLDR
- Amazon will eliminate approximately 14,000 additional corporate roles starting next week in second major layoff wave
- Combined cuts totaling 30,000 jobs mark Amazon’s biggest workforce reduction, exceeding 27,000 eliminated in 2022
- Affected departments include AWS, retail, Prime Video, and HR with cuts representing 10% of corporate staff
- CEO Andy Jassy cites reducing management bloat from rapid growth years, dismissing financial or AI-related causes
- Strong Buy consensus from Wall Street with $294.45 average price target showing 26% potential upside
Amazon plans to cut roughly 14,000 more corporate jobs beginning as early as next week. This continues a broader workforce reduction that will total 30,000 positions.
The company eliminated about 14,000 jobs in October. The upcoming cuts are expected to mirror that scale and could begin Tuesday, according to people familiar with the matter.
Several key business units will see reductions. Amazon Web Services, retail operations, Prime Video, and the People Experience and Technology group will all be affected. The company declined to comment on the reports.
These layoffs will mark the largest in Amazon’s history. The company cut 27,000 positions across several rounds in 2022 and early 2023.
Breaking Down the Workforce Impact
Amazon employs approximately 350,000 corporate workers. The 30,000 planned reductions equal about 8.5% of that segment.
The picture changes when looking at total headcount. Amazon’s full workforce includes 1.57 million employees across warehouses and logistics centers. From that perspective, the cuts represent less than 2% of all workers.
CEO Andy Jassy addressed the reasoning during a recent earnings call. He told analysts the decision is “not really financially driven and it’s not even really AI-driven.”
“It’s culture,” Jassy explained. “You end up with a lot more people than what you had before, and you end up with a lot more layers.”
Amazon grew aggressively from 2017 through 2022. That period created additional management layers the company now considers excessive.
The AI Question
Some observers link these cuts to artificial intelligence automation. Software engineers in Washington state experienced heavy job losses during the October round.
Jassy pushes back on direct AI replacement theories. Yet he previously acknowledged expecting corporate workforce shrinkage from AI-driven efficiencies over time.
Amazon invests heavily in AI infrastructure. The company spends billions on data centers, specialized chips, and AI development. HR chief Beth Galetti framed the October cuts as resource reallocation toward the company’s “biggest bets,” highlighting AI as the priority.
Investor Perspective
These job cuts aren’t rattling Wall Street confidence. Analysts focus on different factors when evaluating Amazon’s prospects.
The February 5 earnings report carries more weight. Investors want to see AWS performance data, especially regarding AI-driven demand acceleration.
Analyst ratings remain overwhelmingly positive. Of 47 analysts covering the stock, 46 rate it Buy while just one holds a Hold rating. That creates a Strong Buy consensus.
Price targets tell a bullish story. The average 12-month target sits at $294.45, implying roughly 26% upside from current prices.
October’s affected workers received 90 days on payroll to pursue internal transfers or external opportunities. That grace period expires Monday, coinciding with the next reduction wave.
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