Amazon is set to eliminate up to 30,000 corporate positions beginning Tuesday as the company seeks to reduce expenses and correct for overhiring during the pandemic, according to sources familiar with the plan.
The layoffs, which would be the company’s largest since 27,000 jobs were cut starting in late 2022, represent nearly 10% of Amazon’s 350,000 corporate employees but a small fraction of its 1.55 million total workforce.
An Amazon spokesperson declined to comment.
The job reductions are expected to affect several divisions, including human resources (known as People Experience and Technology), devices and services, and operations. This move follows two years of smaller-scale layoffs across various departments.
According to the sources, managers of impacted teams underwent training on Monday on how to communicate the news to staff. Notifications are scheduled to be sent via email starting Tuesday morning.
These cuts align with CEO Andy Jassy’s broader initiative to streamline the company and reduce what he has described as “an excess of bureaucracy.” Jassy previously established an anonymous complaint line to identify inefficiencies, which he said has resulted in over 450 process changes. He also stated in June that the increased use of artificial intelligence to automate routine tasks would likely lead to further job cuts.
While the initial figure is reported to be as high as 30,000, sources cautioned that the final number could change based on the company’s shifting financial priorities. Fortune previously reported that the human resources division could be targeted with a reduction of roughly 15%.
Amazon shares were trading up 1.2% at $226.80 on Monday afternoon. The company is scheduled to report its third-quarter earnings on Thursday.
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