E-commerce giant Amazon is reportedly planning to reduce its workforce in India by 800 to 1,000 employees as part of a larger global layoff strategy. This move aligns with the company's aim to cut costs, streamline operations, and accelerate automation.
The layoffs are expected to affect various divisions, including Amazon Web Services (AWS), operations, devices, services, and human resources, specifically the People Experience and Technology (PXT) division. Insiders suggest that the PXT division could experience a reduction of up to 15% of its staff.
Globally, Amazon is set to cut approximately 14,000 corporate jobs, marking the largest layoff in the company's history. Notifications to affected employees are expected to be sent out via email. These layoffs will affect nearly 10% of Amazon's 350,000 corporate employees, a fraction of its total workforce of 1.55 million.
Amazon's CEO, Andy Jassy, is implementing a "lean management" approach to reduce bureaucracy, strengthen accountability, and leverage AI-driven efficiency. This initiative has already led to process changes and the elimination of middle-management roles. The company has also enforced a strict five-day office rule, but the return-to-office policy did not result in the anticipated voluntary departures, leading to the initiation of layoffs.
Analysts believe that the layoffs indicate a shift in Amazon's corporate structure, with routine and back-office roles being replaced by machine learning tools. Despite the layoffs, Amazon's stock has remained stable, with Wall Street supporting the company's focus on efficiency and margin improvement. The company anticipates a strong holiday season and plans to hire 250,000 seasonal workers to manage increased demand.
Amazon's decision to reduce its workforce reflects a broader trend among Big Tech companies, including Microsoft, Meta, Google, Salesforce, and Intel, all of which have announced downsizing this year, citing overhiring during the pandemic and increased AI productivity.
Beth Galetti, Amazon's Senior Vice President of People Experience and Technology, stated that the company is making organizational changes to reduce bureaucracy, remove layers, and shift resources to invest in key strategic areas. Amazon aims to operate "like the world's largest startup" by increasing ownership and realizing efficiency gains.
For employees who cannot find a new role within Amazon or choose not to, the company will offer transition support, including severance pay, outplacement services, and health insurance benefits. Amazon also expects to continue hiring in key strategic areas while further streamlining operations and increasing efficiency in 2026.
The Seattle-based e-tailer has a substantial presence in India, with 120,000 to 130,000 direct employees, approximately 35,000 of whom are in corporate roles.
