Amazon announces record-breaking layoffs, 1,800 engineers lose their jobs, AI plays a major role!
The historic layoffs announced at Amazon last month impacted nearly every major vertical of the company, be it AWS, Prime Video, retail, devices, or advertising. However, the role most impacted by this major move was that of engineers. WARN filings submitted in several US states reveal that the heaviest share of the thousands of job cuts were in technical and engineering teams.
Documents collected by CNBC in New York, California, New Jersey, and Washington show that engineering roles accounted for nearly 40% of the more than 4,700 job cuts recorded in these states. These figures represent only a fraction of the total global layoffs, as data from all states is not available at the same time. Nevertheless, the picture is clear: Amazon laid off a record number of engineers during this period.
This move comes at a time when many tech companies are implementing thousands of layoffs in 2024-25, despite robust profits. According to Layoffs.fyi, 231 tech companies collectively cut approximately 113,000 jobs during the year. This is a trend that began after the post-pandemic restructuring in 2022.
Reports indicate that Amazon CEO Andy Jassy has been talking about running the company like “the world’s largest startup” for the past two years, meaning a lean structure, fewer layers, and faster decisions. Jassy has consistently emphasized the need to produce more output with fewer resources and eliminate disorganized layers within teams. Another round of layoffs is also expected in January.
Furthermore, the company is rapidly shifting its resources toward AI initiatives. Jassy has previously stated that artificial intelligence will impact Amazon’s corporate headcount in the coming years. HR head Beth Galetti wrote in her layoff note, “AI is the most transformative technology of this generation, and companies have never been able to innovate so quickly. We need lean, low-layer teams so we can deliver faster for customers.”
The report further states that Amazon, however, says AI is not the primary reason for these layoffs. According to the company, the goal is to create a more agile and less bureaucratic operation.
