Amazon Layoffs Target Retail Managers, AWS Faces Uncertainty
Amazon has initiated one of its most extensive corporate layoffs to date, cutting up to 30,000 jobs globally as part of a sweeping AI-led restructuring.
The move, confirmed in late October 2025, has disproportionately affected early and mid-level managers in the company’s US retail division.
Internal data and employee accounts suggest that the layoffs are aimed at reducing bureaucracy and streamlining operations, but fears are rising over potential ripple effects in Amazon Web Services (AWS), the company’s most profitable segment.
Amazon Layoffs: Retail Management Takes the Brunt
According to internal documents obtained by Business Insider and reported by The Economic Times, the hardest-hit group includes level 5 and level 6 managers in Amazon’s US retail operations.
These roles typically involve overseeing regional teams, managing logistics, and coordinating customer experience initiatives.
The layoffs are part of a broader effort to flatten management layers and improve operational efficiency.
Amazon has not disclosed the exact number of retail managers affected, but sources indicate that the cuts are significant.
Employees were notified via email, and many reported losing access to internal systems shortly after receiving the message.
Some were invited to virtual meetings with HR representatives to discuss transition support.
AI Restructuring and Strategic Priorities
The layoffs are closely tied to Amazon’s push toward automation and generative AI.
CEO Andy Jassy has emphasized the need to align the company’s workforce with its evolving technology strategy.
The restructuring is intended to free up resources for investment in AI-driven tools, customer service automation, and predictive analytics.
Amazon’s Devices and Services, Prime Video, and HR teams have also seen job reductions.
In India, the shake-up has impacted between 1,000 and 1,500 employees across various business units, including AWS and content moderation teams.
Concerns Over AWS Stability
While AWS has not been the primary target of the current layoffs, employees within the cloud division are expressing concern about future cuts.
AWS contributes more than 70% of Amazon’s operating income and is considered critical to the company’s long-term growth.
However, insiders suggest that efficiency reviews and role consolidations are underway, which could lead to further reductions in 2026.
The fear is that trimming support and middle-management roles in AWS could affect service delivery and client engagement.
Some employees have voiced worries about increased workloads and reduced bandwidth for innovation.
Amazon Layoffs: Global and Local Impact
In India, Amazon’s corporate workforce includes roughly 35,000 employees.
The layoffs have affected roles in Bengaluru, with reports of badge access being revoked and employees asked to contact security for exit procedures.
The company has offered severance packages and career transition support, but the sudden nature of the notifications has left many unsettled.
Globally, Amazon’s corporate headcount stands at around 350,000.
The current round of layoffs represents nearly 10% of this workforce, making it the largest downsizing in the company’s history.
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