The layoffs are expected to affect employees across finance, marketing, human resources, and technology departments. (ai Generated Image)
Amazon is preparing to lay off 800–1,000 corporate employees in India as part of a broader global workforce reduction of 14,000 employees, according to people familiar with the matter. The move is part of the company’s ongoing efforts to streamline operations, cut costs, and shift focus toward artificial intelligence-driven efficiency, said a report by the Economic Times.
The layoffs are expected to affect employees across finance, marketing, human resources, and technology departments. Sources said most impacted roles are tied to global reporting structures, reflecting a worldwide restructuring led from Amazon’s headquarters in Seattle.
This round of layoffs follows CEO Andy Jassy’s internal directive last year, which emphasized the need to “reduce layers, increase ownership, and eliminate bureaucracy” across business units. The memo set the tone for a multi-year restructuring plan focused on flattening teams and automating functions where possible.
In a note to employees, Beth Galetti, Senior Vice President of People Experience and Technology, said Amazon would continue hiring in “key strategic areas” in 2026 but also warned of further job cuts as the company continues to “find additional places to remove layers and realize efficiency gains.”
The latest retrenchment marks Amazon’s second major workforce reduction in India after around 500 employees were laid off in 2023, part of a global job cut affecting 9,000 roles.
AI and Efficiency Take Center Stage
Industry analysts suggest the current round of job cuts reflects Amazon’s larger bet on AI-led automation and predictive analytics. These technologies are being integrated across logistics, customer support, and backend operations, potentially reducing the need for certain mid-level corporate roles.
“Amazon’s global cost optimization drive is now clearly visible in India,” said a person tracking the company’s restructuring. “The company wants to invest heavily in AI-driven systems, which will likely lead to redundancy in traditional corporate functions.”
Amazon India’s Financial Performance
Despite the job cuts, Amazon’s India operations have shown improvement in profitability. As reported by The Economic Times on October 24, all four key business units—Amazon Seller Services, Amazon Transport Services, Amazon Wholesale, and Amazon Pay—recorded a sharp decline in net losses for FY25, driven by lower marketing expenses and reduced employee costs.
Revenue growth, however, remained moderate compared to pandemic years. The company continues to face stiff competition in India’s e-commerce and quick-commerce segments from players such as Blinkit, Swiggy Instamart, and Zepto.
Earlier this year, Amazon also relocated its India headquarters in Bengaluru to a new facility costing nearly one-third of its previous rent, part of its broader cost rationalization strategy.
While the latest layoffs underscore Amazon’s focus on efficiency, they also highlight the broader restructuring trend sweeping through global tech giants adapting to the post-pandemic digital slowdown.
With increasing reliance on automation, industry watchers believe Amazon will likely rebalance its workforce toward AI, logistics optimization, and data infrastructure, rather than reversing the cuts.
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