Amazon India to lay off up to 1,100 employees amid global corporate restructuring

New Delhi: Amazon India may eliminate between 900 and 1,100 jobs as part of a global overhaul aimed at trimming corporate bureaucracy and redirecting resources toward artificial intelligence initiatives, according to reports. 

The layoffs, affecting primarily corporate roles, come on the heels of the e-commerce giant's announcement of broader workforce reductions impacting thousands worldwide.

The move is part of Amazon's strategy to become "leaner and more efficient" in the face of rapid technological advancements, particularly in AI, according to company statements. Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, explained in a blog post that the changes are necessary to "eliminate excess layers" and reallocate efforts to high-growth areas. This follows a period of aggressive hiring during the COVID-19 pandemic, when Amazon expanded its workforce by over 500,000 employees globally to meet surging demand.

In India, where Amazon employs between 120,000 and 130,000 people directly, the cuts are expected to target a few thousand roles overall, with estimates suggesting around 35,000 of its local staff are in corporate functions. 

Divisions such as Amazon Web Services (AWS) and human resources are likely to feel the impact, though specifics on affected teams remain limited. 

Globally, Amazon is targeting approximately 14,000 corporate positions, representing a significant portion of its 350,000-strong corporate workforce out of a total 1.55 million employees. 

Some reports have cited figures as high as 30,000, highlighting the scale of what could be the company's largest-ever job cuts. The reductions span nearly every business unit and are designed to flatten organisational hierarchies, allowing for faster decision-making in an AI-dominated landscape.

Affected employees in India and elsewhere will receive support packages, including 90 days to apply for internal positions, severance pay, outplacement services, and extended health insurance benefits for those unable to transition within the company. Amazon emphasised that these measures are not a reflection of poor performance but a strategic pivot to maintain competitiveness.

This latest round of layoffs builds on previous reductions; Amazon trimmed about 27,000 jobs in 2022 and 2023 amid post-pandemic adjustments.