Amazon Layoffs: Reason Behind 30,000 Job Cuts, Severance Package Details

Tech giant Amazon has started one of the largest layoffs in its history, notifying about 30,000 employees of their termination on Tuesday.

According to Reuters, Amazon managers received urgent training on Monday, October 27, to prepare for delivering the news to affected staff. The notifications began the next day.

These job cuts impact 10% of Amazon’s 350,000 corporate workforce. This marks the biggest single layoff event in the tech industry since at least 2020. Since 2022, Amazon has already eliminated 27,000 roles.

Who Will Be Most Affected?

Reports suggest that employees in the US, UK, and Canada will face the biggest cuts. The layoffs mainly focus on several divisions, particularly the Human Resources department, known internally as People Experience and Technology (PXT).

Other affected units include Operations, Devices and Services, and Amazon Web Services (AWS). Around 15% of the HR workforce, or thousands of its over 10,000 global employees, are expected to be impacted.

Why Amazon Is Laying Off Employees

The layoffs are driven by automation and efforts to cut costs. Amazon CEO Andy Jassy is leading a push for greater efficiency while investing over $100 billion in AI infrastructure this year.

Jassy’s plan includes reducing management layers through an anonymous feedback system that has already gathered 1,500 employee responses.

The company’s strict five-day return-to-office policy did not result in the expected voluntary departures, leading to more layoffs.

Amazon has promised that all affected employees will receive full pay and benefits for 90 days after their termination.

Seasonal Hiring Amid Job Cuts

Despite the downsizing, Amazon plans to hire 250,000 seasonal warehouse workers for the upcoming holiday season to meet increased demand.

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Amazon Layoffs: Reason Behind 30,000 Job Cuts, Severance Package Details