Internal Amazon data shows retail managers hardest hit by US job cuts. Employees worry AWS could be next.

Core Insights - Amazon has initiated significant job cuts, primarily affecting early to mid-level managers in its retail division, with concerns rising about potential future cuts in Amazon Web Services (AWS) [1][6][10] Group 1: Job Cuts Overview - Over 78% of the roles eliminated were held by managers designated L5 to L7, indicating a focus on reducing management layers [1] - More than 80% of the employees affected worked in Amazon's retail business, which includes e-commerce, human resources, and logistics [2] - The total number of employees impacted by the layoffs is approximately 14,000, with a potential total of 30,000 job cuts anticipated [5] Group 2: Strategic Implications - The job cuts are part of Amazon's strategy to streamline its management structure and reduce bureaucracy, with a 15% reduction in the manager-to-employee ratio this year [3] - The focus on retail employees aligns with Amazon's goal of increasing efficiency and profit margins in its most mature business [3] - Amazon's retail division has already implemented a hiring freeze and is prioritizing cost-cutting measures to support faster delivery and product expansion [12][13] Group 3: Future Outlook - Concerns among AWS employees have emerged, with indications that additional job cuts may occur, particularly in AWS, with teams instructed to reduce headcount by 5% in 2025 and 10% in 2026 [6][10] - The HR chief emphasized that the reductions are part of an effort to operate Amazon "like the world's largest startup," adapting to the rapid rise of AI in the business landscape [11]