Overview
- Amazon has begun notifying affected corporate employees, with most given 90 days to pursue internal roles and others offered severance, health benefits, and outplacement support.
- State filings show 1,403 positions cut in California, with management titles affected and the largest share hitting software development engineers.
- On the earnings call, Andy Jassy said the reductions were not financially or AI driven, contrasting with HR chief Beth Galetti’s memo that called AI the most transformative technology and urged a leaner structure.
- The announcement came alongside a strong quarter: $180.2 billion in sales, 13% year-over-year growth, AWS up 20% to $33 billion, and a roughly 13% after-hours stock pop reported by the press.
- Coverage notes Jassy’s June memo warning AI would shrink corporate headcount over time, and separate reports suggest additional restructuring into 2026 could raise total cuts toward 30,000, which Amazon has not confirmed.