Amazon Targets 30,000 Job Cuts Amid AI Transition and Global Slowdown
Tech giant Amazon has announced another major round of layoffs, targeting tens of thousands of employees worldwide, as part of its plan to “operate like the world’s largest startup.” According to CNN Business, the Amazon layoffs employees reduction could eventually exceed 30,000 corporate roles, underscoring the company’s push for leaner operations and AI-driven efficiency in a slowing global economy.
The layoffs come despite Amazon posting over $35 billion in profits in the first half of 2025 and investing an estimated $120 billion in artificial intelligence (AI) technologies this year. Analysts say this contrast highlights how even profitable companies are prioritizing efficiency and automation over headcount stability.
Why Amazon Is Letting Go of Thousands of Employees
CEO Andy Jassy’s memo to employees emphasized that the decision was not purely financial but part of a long-term vision to transform Amazon’s business structure for the AI era. He argued that a “leaner workforce” would allow the company to stay agile and competitive as technology reshapes global commerce.
However, experts quoted by CNN argue that this strategy reflects a “preemptive move” rather than one directly driven by AI automation. “Very few companies are actually replacing people with AI right now,” said Jessica Kriegel, chief strategy officer at Culture Partners. “Leaders want the financial runway to explore how AI might drive efficiency, but the technology isn’t yet ready to take over most human roles.”
Broader Layoff Trend: UPS, Target, and Others Follow Suit
Amazon isn’t alone. In the same week, UPS revealed it had cut 48,000 positions in 2025, while Target eliminated 1,800 corporate jobs as part of cost optimization efforts. Across Corporate America, companies are tightening spending in response to rising prices, trade tensions, and global uncertainty.
The layoffs have been welcomed by Wall Street as a sign of fiscal discipline, though critics warn they could harm long-term innovation and employee morale.
Are AI and “Efficiency” the Real Reasons?
While Amazon insists that AI was not the main reason behind the majority of job cuts, its executives have repeatedly said that automation and machine learning will play a growing role in operations. Analysts believe Amazon is positioning itself to capitalize on AI productivity gains that may still be years away.
However, as Sam Ransbotham, a professor at Boston College, noted, many corporations are “expecting too much, too soon” from AI. He warned that the race to automate could create instability: “Not everything we’re expecting will pan out.”
Meanwhile, terms like “AI-washing” — when companies overstate their AI usage in job postings or strategy — are becoming increasingly common. A study from Indeed found that nearly 25% of job listings mentioning AI lacked any clear explanation of how it would be applied.
Impact on Amazon Employees
The Amazon layoffs employees announcement will significantly impact corporate staff across multiple divisions, though the company has not specified which teams are most affected. Previous cuts at Amazon focused on its human resources, devices, and games divisions, including teams behind Amazon Games’ “New World” project.
Those impacted are expected to receive severance packages, extended healthcare benefits, and job placement assistance, similar to prior layoff rounds. Still, experts warn that “slimming down too early” can make companies brittle rather than nimble.
“Cutting workforce capacity without stable AI infrastructure could backfire,” Kriegel told CNN. “The companies that will win this revolution aren’t the ones that automate the fastest — they’re the ones that adapt the best.”
Market and Industry Reaction
Following the announcement, Amazon’s stock (AMZN) rose slightly by about 1%, as investors anticipated improved profit margins. Analysts expect Wall Street to reward Amazon in the short term for the cuts, though they caution against over-optimism.
The Amazon layoffs 2025 could also influence other major employers in the logistics and retail industries to follow suit, especially as global economic uncertainty lingers.
Conclusion
The Amazon layoffs employees decision marks a pivotal moment in the company’s evolution from a high-growth tech leader to a streamlined, AI-driven enterprise. While the Amazon job cuts may deliver short-term financial gains, they also raise pressing questions about the future of work, automation, and the value of human capital in an AI-dominated era.
As experts warn, the companies that thrive won’t just be those that cut fastest, but those that adapt smartest.
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