Amazon’s latest layoff wave, the largest in its 31-year history, has landed hardest on engineers. According to a report by CNBC, WARN filings across New York, California, New Jersey and Washington show that almost 40 percent of the 4,700 reported job cuts in those states were engineering roles. These filings represent only part of the more than 14,000 reductions announced last month, with some states yet to disclose full details, as per the report.
The cuts put Amazon alongside a crowded list of tech companies slashing staff despite soaring profits and record cash reserves. More than 113,000 tech workers have been laid off this year as the sector recalibrates after the pandemic era’s hiring spree.
Jassy’s drive for a leaner Amazon
CEO Andy Jassy has repeatedly said he wants Amazon to operate like “the world’s largest startup”. That mission has now translated into fewer layers, tighter teams and a push for staff to “do more with less”. While Amazon insists AI wasn’t the primary reason for most cuts, the company admits it is shifting resources to accelerate AI development. Jassy has previously predicted that corporate headcount will shrink naturally as AI tools make teams more efficient.
According to the report, human resources chief Beth Galetti told staff the company must innovate faster, with a leaner structure enabling quicker decision-making. The layoffs affected a broad mix of engineering levels, but mid-level SDE II roles were especially impacted, reflecting Amazon’s focus on flattening the organisation, as per the report.
Product, gaming and AI shopping teams restructured
More than 500 product and programme managers were cut, representing over 10 percent of the total reductions across states with WARN data. Senior managers and principal-level roles were also swept up in the restructuring. Amazon has been steadily winding down some of its more experimental ventures, shutting services such as its telehealth product, a kids calling device and various physical retail formats.
Its video game division faced major reductions. California filings show deep cuts in San Diego and Irvine studios, affecting designers, artists and producers. Amazon is pausing most work on big-budget MMO titles, including efforts linked to its “Lord of the Rings” project, as per the report.
The visual search and shopping teams behind Amazon Lens and Lens Live were also heavily impacted, with software engineers, applied scientists and QA specialists among those let go in Palo Alto. The online ads division wasn’t spared either: more than 140 sales and marketing roles were eliminated in New York alone, claims the report.
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