Amazon Cuts 14,000 Corporate Jobs, Retail Managers Hit Hardest

Amazon has announced the elimination of approximately 14,000 corporate positions as part of a restructuring effort aimed at reducing bureaucracy and enhancing investments in products and artificial intelligence (AI). Internal data obtained by Business Insider reveals that the majority of these cuts have affected early- to mid-level managers within the company’s US retail division, raising concerns about potential future layoffs in Amazon Web Services (AWS).

The internal analysis shows that more than 78 percent of the initial layoffs, which were communicated to employees on Tuesday, involved individuals holding L5 to L7 designations. These levels typically correspond to management and frontline leadership roles at Amazon. Furthermore, over 80 percent of the eliminated positions were situated within retail-facing teams, including e-commerce, human resources, and logistics.

According to Business Insider, Amazon’s decision to cut jobs is part of a broader strategy to streamline operations. The company has reportedly been reviewing its cost structure, with discussions among executives indicating that total job cuts could eventually reach as many as 30,000. As a result, the retail division, which is a mature and lower-margin business, has been disproportionately affected.

In an effort to enhance efficiency, Amazon is narrowing its management layers. CEO Andy Jassy has reportedly advocated for reducing the manager-to-employee ratio by around 15 percent. Internal communications suggest that this shift is aimed at fostering a more agile working environment, allowing for quicker decision-making and improved resource allocation.

While the retail organization has faced the brunt of the layoffs, there is growing apprehension among employees across the company, particularly within AWS. Although less than 1 percent of the positions eliminated in the recent layoffs were from AWS, some employees have indicated that further job cuts in the cloud unit may occur in the coming years. Reports suggest that certain AWS teams have been instructed to reduce their headcount by 5 percent in 2025 and by 10 percent in 2026.

Human Resources chief Beth Galetti has reassured employees that the restructuring is not indicative of operational distress. Instead, she emphasized the necessity for Amazon to function “like the world’s largest startup.” Senior leaders have also underscored the commitment to reinvesting in strategic areas, including AI and automation, while continuing to hire selectively.

Affected employees were notified of their job status and provided a 90-day period to explore internal opportunities or transition out of the company with severance and support. Historically, Amazon has offered job-search assistance and severance packages during significant restructuring events. The company has reiterated its intention to maintain hiring in high-priority areas, even as it reduces management layers elsewhere.

As Amazon navigates this significant workforce reduction, the implications for both its retail and cloud divisions remain to be seen. Employees are left grappling with uncertainty as the company seeks to balance cost-saving measures with its long-term growth objectives.