Amazon targets as many as 30k corporate job cuts, sources say
Timing and Stated Rationale
- Many see the timing—days before an earnings call and the holidays—as primarily about hitting quarterly numbers, not “pandemic overhiring.”
- Commenters note Amazon has used “pandemic overhiring” to justify multiple rounds of layoffs over several years and question why investors still treat it as credible.
- Some expect the layoffs will be framed as “AI-driven efficiency,” even though several argue that’s PR more than reality.
Scale and Human Impact
- 30,000 jobs, roughly 10% of corporate staff, is described less as “cleanup” and more as a “decimation” or “massacre.”
- People highlight non-abstract consequences: loss of health insurance, forced moves, children changing schools, and in extreme cases mental health crises and suicide.
- Others note that the burden often falls on line workers and ICs while the leadership that created the bloat remains.
AWS, Retail, Finances, and AI
- Debate over whether AWS is a truly separate company vs just a major subsidiary/segment under Amazon’s holding structure.
- Disagreement on finances: some call AWS the cash cow that can easily fund $100B+ in capex; others assert AWS free cash flow is insufficient and subsidized by retail and corporate debt.
- Several reject the idea that the layoffs are a response to a recent AWS outage; they see this as a standard pre-earnings cost cut.
- A quoted analyst ties cuts to AI productivity gains; multiple commenters say there’s no clear evidence of that and see the AI angle as investor-friendly spin.
Bloat, Management, and Culture
- Some welcome the cuts as a needed reset for a bloated org rife with middle-management turf wars, tenured coasters, and process theater (six-pagers, “leadership principles” rhetoric).
- Others counter that profitable or strategically important teams are also being “decimated,” projects offshored, and maintenance work canceled, suggesting efficiency is not the real driver.
- Cutting managers is reported to push more managerial and process work onto engineers, increasing paperwork rather than agility.
Geography, Visas, and Offshoring
- Open question whether “corporate” mainly means expensive US-based staff or a global mix.
- One data analysis (linked in-thread) claims the share of job postings in offshored countries has nearly tripled since 2020, suggesting a structural shift rather than one-off trimming.
- Some argue the effective tightening of H‑1B will push more hiring into foreign offices; others note offshoring is already cheaper regardless of visa policy and hard to regulate.
Shareholders vs Workers and Broader Reflections
- Critics see the move as transferring several more billions from workers to already-profitable shareholders, in a context of ~$59B net profit.
- Defenders respond that a company’s job is to maximize profit and stock price, not stop at “enough.”
- Others see layoffs and buybacks as signs of a mature company out of growth ideas, and personally avoid such stocks.
- Broader comments lament an economy focused on financial engineering over innovation, with high living costs and consolidation making it harder to start and grow smaller, more resilient firms.