Is Amazon In Trouble? What The Recent Massive Layoffs Is Telling Us

In the heart of 2025's tech layoffs surge, Amazon unleashes its largest corporate job cuts yet, slashing 30,000 positions amid AI automation frenzy and AWS growth slowdown. This massive restructuring, launched on 28 October 2025, signals deeper corporate turmoil as CEO Andy Jassy's efficiency drive collides with holiday hiring plans and stock market jitters.

As employee reactions flood verified X posts, the e-commerce giant grapples with bloated bureaucracy and AI-driven productivity shifts, raising alarms over tech industry trends.

The Scale and Scope of Amazon's 2025 Layoffs

Amazon plans to slash as many as 30,000 corporate jobs starting 28 October 2025, representing nearly 10% of its roughly 350,000 corporate employees out of a total 1.55 million workforce. This marks the company's biggest reduction since late 2022, when it cut around 27,000 positions.

The redundancies span diverse divisions, including human resources—known as People Experience and Technology or PXT—operations, devices and services, and Amazon Web Services (AWS). Managers received training on 27 October 2025 to handle notifications, underscoring the operation's precision. Earlier this year, Fortune reported potential 15% trims in human resources, hinting at broader sweeps.

According to Layoffs.fyi, 98,000 tech jobs were lost across 216 firms in 2025 so far, up from 153,000 in 2024, framing Amazon's move within industry-wide contraction. Despite the upheaval, Amazon plans to fill 250,000 seasonal roles for warehouses, balancing cuts with holiday demand. This dual approach highlights strategic pivots amid economic pressures.

Driving Forces: AI, Bureaucracy, and Cost Pressures

CEO Andy Jassy spearheads an anti-bureaucracy crusade, installing an anonymous hotline that garnered 1,500 responses and sparked over 450 process tweaks. A five-day office return mandate failed to drive attrition, prompting firmer measures like deeming remote workers voluntary quits without severance.

Jassy warned in June 2025 that AI tools would automate routine tasks, fuelling further reductions. eMarketer analyst Sky Canaves notes, 'This latest move signals that Amazon is likely realising enough AI-driven productivity gains within corporate teams to support a substantial reduction in force.'

Short-term pressures mount to counterbalance hefty AI infrastructure spends, even as AWS—Amazon's profit engine—posted second-quarter sales of £23.18 billion ($30.9 billion), up 17.5% year-on-year. Third-quarter estimates project £24 billion ($32 billion), a modest 18% rise, signalling a slowdown from prior 19% gains. Seeking Alpha previews Q3 earnings on 31 October 2025, eyeing AWS margins amid rivals' faster AI traction. These forces converge to reshape Amazon's operational core.

Market Reactions and Employee Fallout

Amazon shares climbed 1.2% to £170.32 ($226.97) on 27 October 2025, defying layoff headlines as investors bet on cost savings. Yet, Amazon remains the laggard among 2025's 'Mag 7'—up just 3.9% versus S&P 500's 16.5%. Analyst Amanda Goodall posted on X, 'Up to 30K layoffs being reported!!! From the 2021 peak of 1.1 million US jobs, we've seen a net decline of about 100,000 by mid-2025.'

Blind forums buzz with severance queries and morale dips, reflecting broader tech fatigue. The Guardian highlights pandemic-era hiring reversals, with cuts reversing 2020-2021 expansions. Bloomberg flags AWS bloat as a hindrance to AI deals against nimbler foes like Microsoft Azure, which surged 39%.

As 118,000+ tech roles vanish in 2025, per Goodall, workers face the stark reality of automation, blending fear with adaptation calls. In India, where Diwali festivities just wrapped, X posts buzz laments the timing for contract workers thrust into unemployment overnight.