SEATTLE, October 29 — Tech giant Amazon has begun one of the largest rounds of layoffs in its history, cutting 14,000 jobs across multiple cities and departments. The move has sparked deep anxiety among employees, with many fearing that further cuts are on the horizon.
A Major Restructuring Across Divisions
Early on Tuesday morning, Amazon employees woke up to difficult news — around 14,000 of them would soon lose their jobs.
According to an internal memo from Beth Galetti, Amazon’s Head of Human Resources, the decision is part of a company-wide restructuring effort aimed at “reducing bureaucracy, removing layers, and shifting resources to our biggest bets.”
The layoffs affected:
Nearly 2,200 employees in Seattle and Bellevue alone
Teams across various offices and divisions worldwide
Roles ranging from tech and operations to human resources
Those affected will receive 90 days to apply for new positions within Amazon, with internal candidates being prioritised, Galetti added.
Industry-Wide Layoffs Continue
Amazon’s announcement adds to a growing list of mass layoffs across the tech sector. Companies like Microsoft, Meta, Oracle, and Salesforce have already trimmed thousands of roles this year as they reallocate spending toward artificial intelligence (AI) infrastructure.
In Washington state alone, over 4,280 tech workers have lost their jobs in 2025, most from Microsoft’s 15,000 global job cuts.
According to Reuters, Amazon’s total layoffs could eventually reach 30,000 employees — making it the largest workforce reduction in the company’s history.
“A Sleepless Night” for Employees
The atmosphere in Seattle’s South Lake Union neighbourhood, home to Amazon’s headquarters, was somber. Many employees were seen walking their dogs or chatting quietly near the company’s Spheres campus.
“I couldn’t sleep last night,” said Edgar, an Amazon worker waiting for the company shuttle.
“I’m used to it,” said another worker, who added that job insecurity is especially tough for immigrants whose legal status depends on employment.
Students nearby at Northeastern University also shared their worries about their career prospects.
“Things have gone downhill,” said Abhishek Jami, a student expecting to graduate in the spring.
Some employees expressed cautious relief at still having their jobs but admitted to fearing what may come next.
“Seven members of my team were laid off,” said Kevin, an Amazon employee. “I’m worried about my own job. I’m surprised by how many people I know who were affected.”
Others said they were already preparing for the worst.
“I’m just waiting for the next shoe to drop,” one worker said. “It doesn’t feel like this is the end.”
Layoffs Amid Record Profits
Ironically, these layoffs come at a time when major tech firms are posting record-breaking profits. The world’s six most valuable companies — including Microsoft and Amazon — continue to outperform Wall Street expectations even as they reduce staff.
Amazon’s Galetti addressed this contradiction in her memo:
“The world is changing quickly. AI is the most transformative technology since the internet, and we need to be leaner and faster to serve our customers and business.”
Tech CEOs, including Satya Nadella at Microsoft, have expressed similar sentiments, calling the decisions emotionally difficult but necessary for future growth.
Amazon plans to invest $100 billion this year, largely into AI infrastructure, while Microsoft has spent more than $88 billion on similar projects during its 2025 fiscal year.
The Role of Artificial Intelligence
Amazon CEO Andy Jassy has previously acknowledged that AI may reshape the company’s workforce.
“We may need fewer people doing some of the jobs being done today, and more people doing other types of jobs,” Jassy said in a summer memo.
He suggested that it’s difficult to predict the ideal workforce size in an AI-driven future but indicated the company expects gradual downsizing as efficiency improves.
Microsoft President Brad Smith echoed this during the Cascadia Innovation Corridor conference, stating that AI will influence every corner of the economy.
“There’s not a part of the economy that won’t be touched or improved by AI,” he said.
Ripple Effects Beyond Amazon
The layoffs could also impact Seattle’s broader economy. As the city’s largest employer, Amazon’s downsizing may affect local small businesses and reduce the city’s tax revenues.
Jon Scholes, CEO of the Downtown Seattle Association, warned:
“These cuts could ripple through our community. We must ensure downtown Seattle remains an attractive place for businesses to grow.”
Recruiters, however, see a potential upside. Albert Squiers of Fuel Talent said smaller tech companies and startups could benefit from the availability of skilled workers.
“We’ve seen a substantial uptick in hiring among midsize firms,” he said. “The main challenge will be adjusting expectations on pay and benefits.”
At smaller firms, compensation typically lacks the generous stock options and bonuses offered by tech giants like Amazon and Microsoft.
Outlook: Cautious Optimism or More Pain Ahead?
With 2,303 jobs already lost in Washington and reports hinting at more cuts, Amazon’s workforce is bracing for continued uncertainty.
While the company insists it will keep hiring in “key strategic areas” through 2026, the mood remains tense.
Amazon’s restructuring marks a turning point — not just for its employees but for the entire tech industry grappling with balancing record profits, AI innovation, and a shrinking workforce.
References:
Reuters
Bloomberg
Seattle Times
Official Amazon Employee Memo (Beth Galetti)
Cascadia Innovation Corridor Conference (Microsoft Statements)
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