Is Amazon Downsizing Because of Financial Trouble or Strategic Shifts?
When a global tech leader like Amazon announces it’s laying off around 14,000 employees, the natural assumption might be that it’s due to financial strain. However, the reality is more complex and rooted in internal restructuring and strategic transformation.
In a company-wide update shared on 28 October 2025, Amazon confirmed that it is undergoing another round of organisational changes impacting its corporate workforce. While this move will affect thousands, Amazon insists it is not a reaction to poor performance but rather a proactive effort to become leaner, faster, and more customer-focused in an era of rapid technological change, especially with the rise of AI and automation.
What’s the Reason Behind the 14,000 Job Cuts at Amazon?
According to Amazon leadership, the goal of these job reductions is to remove unnecessary layers, reduce bureaucracy, and increase ownership and accountability across teams.
Over the past year, Amazon has been working toward operating more like a “global startup,” agile, inventive, and streamlined. These workforce changes are a continuation of that cultural and structural transformation, allowing the business to shift resources towards what it calls its “biggest bets” areas of innovation that matter most to customers in both the short and long term.
The move may seem surprising, especially as Amazon continues to report strong performance metrics. But in today’s rapidly evolving marketplace, efficiency and adaptability are just as important as profit margins.
Why Restructure When Amazon is Performing Well?
Amazon is indeed delivering strong business outcomes across its e-commerce, cloud computing, and logistics arms. However, the company acknowledges that staying ahead of the curve in today’s fast-moving world, particularly with the rise of transformative technologies like generative AI, requires a different organisational model.
The company believes that having fewer layers, faster decision-making, and clearer ownership of projects will allow it to stay nimble and continue innovating at scale.
By realigning teams and eliminating redundancy, Amazon hopes to accelerate development cycles, boost internal collaboration, and maintain its competitive edge, particularly in areas like AI, cloud services, and logistics tech.
How Will Amazon Support Employees Affected by the Layoffs?
For the employees impacted by these changes, Amazon has outlined a comprehensive support plan:
- Most employees will receive 90 days to find another role internally, although this may vary by region due to local employment laws.
- Internal hiring teams will prioritise affected workers for new openings.
- Those unable or unwilling to find new roles within Amazon will receive severance packages, outplacement services, healthcare benefits, and other forms of transition assistance.
This structured support shows Amazon’s commitment to treating outgoing employees with dignity and offering them a bridge to their next opportunity, whether within or outside the company.
What Areas Are Seeing the Most Cuts and Realignments?
Amazon’s 14,000 job reductions are spread across multiple departments, with the corporate workforce most affected. While no complete list has been made public, patterns suggest particular focus on middle management, human resources, and certain retail operations.
At the same time, Amazon is actively hiring in high-growth areas, including:
- Generative AI and machine learning
- Cloud infrastructure (AWS)
- Prime Video and digital media
- Robotics and fulfilment automation
This shift indicates that while some departments are shrinking, others are expanding rapidly, a sign of strategic reallocation rather than broad cost-cutting.
How Does Amazon’s Organisational Model Reflect Its Startup Mindset?
Amazon’s leadership has frequently spoken about the desire to operate with the energy, innovation, and speed of a startup, despite being one of the world’s largest companies. This vision includes:
- Fewer reporting layers to speed up decision-making
- Greater ownership and accountability at the team level
- Faster invention cycles aligned with customer needs
- Tighter integration between departments
This startup-inspired mindset is at the core of Amazon’s current transformation. In this model, efficiency isn’t about trimming costs, it’s about unlocking agility.
Why Is the Rise of AI Accelerating These Changes?
Amazon views the current wave of AI, particularly generative AI, as the most disruptive technology since the internet. To leverage its full potential, the company needs to move faster, restructure teams, and redirect talent and investment towards automation and intelligent systems.
By cutting down internal bureaucracy and reallocating resources, Amazon is better positioned to lead AI innovation across industries like logistics, cloud computing, and customer service.
In many ways, the layoffs are less about downsizing and more about repositioning Amazon for the next era of growth.
What Are the Implications for the UK Workforce and Market?
Amazon’s UK operations are not immune to the changes. While the company hasn’t released country-specific numbers, corporate roles based in London, Manchester, and other regional offices are likely among those impacted.
At the same time, Amazon continues to invest heavily in UK-based fulfilment centres, logistics tech, and AI development hubs, indicating a long-term commitment to the UK market.
The broader takeaway for UK tech professionals is clear: skills in AI, data science, automation, and cloud computing are increasingly in demand both at Amazon and beyond.
Amazon’s Organisational Changes at a Glance
| Strategic Focus Area | Action Taken | Impacted Teams |
| Reduce Bureaucracy | Removal of internal layers and management | Corporate workforce |
| Increase Ownership | Shift of responsibility to smaller teams | Mid-level roles |
| Focus on AI and Innovation | Investment in tech, hiring in growth areas | AI, AWS, Robotics, Prime Video |
| Customer-Centric Structure | Agile realignment based on consumer needs | HR, Retail Ops, Internal Services |
| Transition Support | 90-day internal search, severance, etc. | Impacted employees globally |
FAQs
Why is Amazon laying off employees when it’s performing well financially?
The layoffs are part of a long-term strategy to streamline operations, reduce bureaucracy, and allocate more resources toward innovative areas like AI and robotics.
Who announced the most recent Amazon layoffs?
Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, shared the internal update on 28 October 2025.
How many roles are being cut in the 2025 layoffs?
Approximately 14,000 roles across Amazon’s global corporate workforce are being eliminated as part of the organisational shift.
What kind of support will laid-off employees receive?
Impacted staff will receive support including 90-day internal job search windows, severance packages, outplacement services, and healthcare benefits.
Are any areas of Amazon still hiring during these layoffs?
Yes, Amazon is actively hiring in strategic areas such as AI, AWS, cloud infrastructure, video content, and logistics automation.
Is this a sign of a larger trend in tech layoffs?
Yes, similar restructuring efforts have been seen at Meta, Google, and Microsoft, as the tech industry adjusts to new economic and technological realities.
What does Amazon mean by operating like a “global startup”?
Amazon aims to function more like a startup by reducing complexity, increasing team-level ownership, speeding up innovation, and remaining highly customer-focused.
