Mumbai, March 18: Amazon will start laying off thousands of employees this year as part of its plan to save costs and reduce headcount. The Amazon layoffs, set for 2025, will eliminate 14,000 roles, reducing the workforce by around 13%. This year, the tech and retail giants have been laying off employees to counter the challenges of AI and focus on profit maximisation. 

According to a report by Financial Express, Amazon job cuts will be announced by early 2025 and help the company save around USD 2.1 to USD 3.6 billion annually. Amazon's upcoming round of layoffs will affect the global workforce and reduce the total number of employees from 1,05,770 to 91,936. The massive reduction in the workforce is part of Amazon's restructuring plan and efforts to streamline the process. Audi Layoffs: German Automobile Giant To Cut 7,500 Jobs Amid Intense Competition, Slow EV Shift and Weak Sales, Volkswagen Layoffs Affect 48,000 So Far.

Amazon CEO Andy Jassy announced a strategy to enhance the e-commerce giant's efficiency and help simplify decision-making by laying off employees. Andy Jassy shared plans to increase individual contributors to managers by 15% in Q1 2025, according to the report. Amazon's CEO said that layoffs will help the company reduce bureaucracy and speed up operations. 

The report cited a Morgan Stanley report that said Amazon job cuts could affect around 13,843 individuals from the workforce next year. It also mentioned that the decision would help the company save substantial costs. With this headcount reduction, Amazon will reportedly increase direct reports, review pay structures, and limit hiring for senior roles. Citigroup Layoffs: US-Based Banking Giant To Cut 30% of Tech Workforce To Reduce Third-Party IT Staff Dependence After USD 22.9 Million Fraud.

Amazon onboarded many new employees during the COVID-19 pandemic, significantly expanding its reach. In 2019, the e-commerce giant boasted 7,98,000 employees. By the end of 2021, the numbers rose to 1.6 million. However, later, Amazon started layoffs and reduced its workforce and limited staffing needs. Between 2022 and 2023, the company cut 27,000 jobs. The company will soon announce the upcoming job cuts for this year, as per reports.

(The above story first appeared on LatestLY on Mar 18, 2025 01:11 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).