Amazon reportedly plans to cut 30,000 jobs. The nation's second-biggest private employer is remaking its workforce.

By Bill Peters

CEO has said AI would likely shrink the company's corporate workforce in the years ahead

The New York Times reported this month that Amazon intends to eventually replace more than half a million positions with robots.

Amazon.com Inc. plans to cut up to 30,000 corporate positions starting on Tuesday, according to reports, a move that comes as the online retailer tries to trim costs amid a massive artificial-intelligence push and broader shifts in its overall workforce.

Reuters reported on Monday that the cuts would be the biggest at the online-retail and cloud-services giant, the second-biggest private employer in the U.S., since some 27,000 roles were eliminated starting in late 2022.

Amazon (AMZN) did not immediately respond to a request for comment.

Shares of Amazon rose 1.2% on Monday.

The cuts, Reuters reported, account for nearly 10% of Amazon's corporate staff. However, they amount to a tiny fraction of Amazon's 1.55 million employees overall, Reuters said.

The Wall Street Journal reported that the exact number of jobs to be cut has yet to be finalized. Those cuts wouldn't happen immediately, according to the Journal.

Reuters said that Amazon has been paring back staff over the past two years in areas like communications, devices and podcasting. Over that time, the company has plowed billions into artificial intelligence - rolling out its own AI chips, personal assistants, and other technology intended to help with shopping and advertising.

The AI spending levels across Big Tech have raised bigger concerns about the industry's ability to generate cash, as well as concerns about actual demand for the technology. As of the summer, Alphabet Inc. (GOOGL) (GOOG), Microsoft Corp. (MSFT), Amazon and Meta Platforms Inc. (META) were set to spend nearly $400 billion on capital expenses this year.

Recently, Molson Coors Beverage Co. (TAP) also announced a round of sharp job cuts. There have been reports that Meta Platforms Inc. (META) and Target Corp. (TGT) also plan to cut some staff.

The New York Times reported this month that Amazon intends to eventually replace more than half a million positions with robots. Amazon Chief Executive Andy Jassy said in June that as AI technology accelerates across the company, it would result in "fewer people doing some of the jobs that are being done today, and more people doing other types of jobs."

"It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company," he said in a message to employees.

In July, during Amazon's quarterly earnings call, Jassy said that the company had recently deployed its 1 millionth robot across its shopping, warehouse and delivery network, and had unveiled new automated package-sorting technology.

"Automation and robotics are also important contributors to improving cost efficiencies and driving better customer experiences over time," he said.

He added later: "This combination of robotics and generative AI is just getting started. And while we've made significant progress, it's still early with respect to what will roll out in the next few years."

-Bill Peters

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10-27-25 1759ET