How Largest Layoffs At Amazon Targeted Its Tech Workforce

Amazon recent wave of corporate layoffs, announced in October 2025 as part of a planned reduction of up to 14,000 corporate staff, has disproportionately hit its core technical workforce.

According to Worker Adjustment and Retraining Notification (WARN) filings across key U.S. states—including Washington, New York, California, and New Jersey—nearly 40% of the approximately 4,700 roles eliminated were engineering positions.

This data, derived from mandatory state filings, reveals that the cuts—the largest in the company’s 31-year history—were not uniformly distributed but were heavily concentrated in the technical layers.

The mid-level Software Development Engineer II (SDE II) role was notably affected, underscoring a strategic shift in how the e-commerce giant views its technical workforce.

Streamlining for the AI Future

CEO Andy Jassy has consistently framed the restructuring as a necessary cultural and operational overhaul. His aim is to transform Amazon into the “world’s largest startup.”

The official rationale provided by the company is to eliminate bureaucratic layers that accumulated during the rapid, pandemic-era hiring binge. 

The goal is to become leaner and faster.

However, the aggressive reduction in engineering roles, the very talent pool traditionally responsible for innovation, has raised eyebrows across the tech industry.

• Cost and Efficiency: Engineering roles command some of the highest salaries. This makes them a natural target in any significant cost-reduction exercise. The cuts are seen as a way to streamline expenses and shift resources toward high-impact areas like generative AI.
• The AI Factor: While Amazon denies that AI is the primary cause now, the company has made deep investments in AI tools, including its own coding assistant, Kiro. This suggests a long-term strategy of doing more work with fewer people. Jassy has predicted that AI-driven efficiency gains will reduce the corporate workforce over the next few years.
• Targeting Middle Layers: The disproportionate impact on SDE II and other mid-level roles reflects a deliberate effort to flatten the organization’s hierarchy. This effort was stated by senior leadership.

Widespread Impact Beyond Code at Amazon

While engineers bore the brunt of the cuts (comprising roughly 1,800 jobs across the four states analyzed), the layoffs were far-reaching. 

They struck experimental and peripheral business units.

• Product and Program Management: Over 500 product and program manager roles were eliminated. This represents more than 10% of the cuts captured by the filings.
• Gaming and Devices: Amazon’s gaming division faced deep cuts. Several major projects, including a planned Lord of the Rings MMO, were shelved. Teams focused on devices and experimental technology, such as the visual search unit Amazon Lens, were significantly impacted.
• Advertising: More than 140 sales and marketing roles were eliminated in New York alone. This demonstrates a wider effort to trim operations outside of core retail and cloud infrastructure.

The job cuts signal a broader, industry-wide recalibration, challenging the long-held assumption of job security for technical talent.

While Amazon commits billions to AI, the reduction of human capital in its technical core is evident. This highlights a fundamental shift in the company’s tech workforce strategy.

Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.