Amazon Cuts Over 1,800 Engineers in Record Layoffs Amidst AI Push & Innovation Drive

Amazon's Strategic Overhaul: Engineers Bear Brunt of Record Layoffs Amidst AI Pivot

Amazon's recent announcement of mass job reductions disproportionately impacted its engineering workforce, revealing a significant shift in the company's operational strategy. State filings indicate that nearly 40% of the approximately 4,700 positions eliminated across Washington, New York, New Jersey, and California were engineering roles, totaling over 1,800 engineers. This substantial cut comes even as CEO Andy Jassy emphasizes a need for accelerated innovation, particularly in artificial intelligence.

Engineering & Tech Divisions Hit Hardest

The sweeping layoffs, part of Amazon's largest reduction in its 31-year history, touched various segments from cloud computing to retail. However, engineering departments felt the deepest impact. Specifically, mid-level software development engineers (SDE II roles) were notably affected. Beyond core engineering, significant cuts were also seen in:

• Video Games: Amazon's gaming division faced "significant role reductions" in its San Diego and Irvine, California studios, and central publishing team. The company is halting much of its work on big-budget (AAA) massively multiplayer online (MMO) games.
• Advertising: A key profit driver, Amazon's online ad business saw over 140 sales and marketing roles cut in New York.
• AI Search & Visual Shopping: Teams responsible for products like Amazon Lens and Lens Live, which use AI for visual search and shopping, experienced heavy impacts in Palo Alto, California, affecting software engineers, applied scientists, and quality assurance engineers.

Driving Towards a Leaner, Faster Amazon

These job cuts are part of CEO Andy Jassy's multi-year initiative to transform Amazon's corporate culture into a "world's largest startup" model. The goal is to make the company leaner, less bureaucratic, and faster in decision-making by urging staff to "do more with less" and reducing organizational bloat. Jassy cited a "culture" issue stemming from an extended hiring spree that created "too many layers" and slowed operations.

Despite cutting staff, Amazon is aggressively shifting resources towards artificial intelligence. HR chief Beth Galetti highlighted AI's transformative potential, stating it enables companies to innovate much faster. The company believes a leaner, more agile structure with fewer layers and more ownership is essential to leverage AI and move quickly for customers. While Amazon clarifies that AI is not the primary driver for the majority of these specific job cuts, Jassy has previously predicted that corporate headcount could shrink in the coming years due to AI-driven efficiency gains.

Broader Tech Trend & Strategic Divestments

Amazon's layoffs align with a broader trend in the tech industry, where over 113,000 jobs have been cut across 231 companies since 2022, as businesses adapt to a post-pandemic economic landscape. This belt-tightening at Amazon also includes curtailing investments in experimental or unprofitable ventures. The company has recently sunset various initiatives, including a telehealth service, a kids' video calling device, a fitness wearable, and several brick-and-mortar retail chains, signaling a clear focus on core profitable areas and future-forward technologies like AI.