Amazon Lays Off Over 18,000 Employees in Largest Cuts in Company History

Amazon CEO Andy Jassy announced layoffs affecting more than 18,000 corporate employees, primarily in the Stores and People Experience & Technology (PXT) organizations, marking the largest workforce reduction in the company's history.

Amazon

January 2023

18,000 employees affected

Global

Why Did This Happen?

Pandemic-era hiring spree doubled headcount to over 1.5 million, creating organizational bloat

E-commerce growth normalized post-COVID, leaving excess capacity in fulfillment and retail divisions

Macroeconomic uncertainty and rising interest rates tightened consumer spending projections

AWS growth decelerated as enterprise customers optimized cloud spending

Pressure from investors to improve operating margins after two unprofitable quarters

Impact Analysis

The cuts primarily hit Seattle and Bellevue corporate offices, with roles eliminated in HR, retail operations, and devices (Alexa). Amazon subsequently shuttered several experimental projects including Amazon Care and Scout delivery robots. The layoffs triggered a broader reckoning in big tech about sustainable headcount growth.

Source: CNBCView original

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