Amazon is getting ready for a new round of layoffs that will target thousands of corporate positions.

Amazon is preparing to implement another wave of corporate layoffs next week, as the e-commerce and cloud computing giant continues efforts to reduce costs and streamline its operations in the face of slower growth, rising competition and broader economic uncertainty. The cuts — expected to number in the “thousands” — will affect teams across business units, reflecting a shift in strategy away from pandemic-era expansion toward tighter fiscal discipline.

The latest round builds on several waves of layoffs that began in 2022 and have persisted intermittently as Amazon adjusts to changing consumer behavior, slower hiring demand and the need to improve profitability. Sources familiar with the company’s plans told Reuters that the cuts would be announced as soon as next week and involve roles in corporate functions, technology divisions, and other non-frontline positions.

For years, Amazon operated on a model of rapid expansion — adding headcount, warehouses and new business lines to capture market share in e-commerce, cloud services, logistics, entertainment, advertising and more. However, as the pandemic-driven surge in online shopping waned and competitors emerged in key sectors, the company has been under pressure to temper its growth trajectory, control costs and deliver stronger profitability to shareholders.

Executives have reportedly acknowledged that some previous hiring was excessive relative to demand, particularly in corporate and support roles that ballooned during earlier growth phases. Additionally, Amazon’s Amazon Web Services (AWS) business — long a centerpiece of its profit engine — still faces cloud competition from Microsoft Azure and Google Cloud, prompting leaders to focus resources on core, high-return areas.

While Amazon has not publicly disclosed exact numbers, sources say “thousands” of positions are expected to be eliminated, primarily among corporate staff in Seattle and other major offices. The cuts are not believed to impact frontline fulfillment workers or warehouse personnel at this stage, though previous rounds included roles across the company.

Employees in engineering, product management, HR, retail operations and advertising teams are among those likely to be affected. The decisions come as part of a broader corporate restructuring aimed at slimming the company’s cost base and enhancing efficiency. Amazon has been offering voluntary exit packages, severance pay, and access to job services for impacted workers, although the full details of the upcoming layoffs have not been outlined publicly.

Social media platforms lit up with employee reaction as news of the layoffs began to spread internally. Business Insider reported that some Amazon employees shared memes referencing the cuts, including images of pizza boxes jokingly labeled with corporate themes, reflecting a mix of dark humor and uncertainty among staff. Such online posts highlight the emotional and cultural impact of workforce reductions on a company that once seemed unstoppable in its hiring momentum.

The memes and commentary encapsulate a broader shift in internal morale — from fast growth and innovation optimism to cautious resilience and, for some, anxiety about job security. While humor serves as a coping mechanism, the reality of reorganizations and job losses has undoubtedly weighed on teams at all levels.

Amazon confirmed in statements that it routinely evaluates its workforce and priorities to ensure alignment with business needs, but the company did not provide specifics about the next layoffs. A spokesperson reiterated that Amazon remains committed to supporting employees through transitions and to investing in areas poised for long-term growth. However, the lack of clear communication about scope and timing fuels employee and investor speculation.

Investors pay close attention to labor decisions because they often signal broader cost management strategies. Amazon’s stock — after years of dramatic growth — has experienced volatility as the company balances investment in innovation with market expectations for profitability. Cost reductions through layoffs, while difficult, are seen by some market analysts as part of rationalizing operations and improving financial performance.

Amazon is not alone in restructuring workforce plans. Since 2022, many major tech companies — including Google, Meta, Microsoft and others — have trimmed staff as they adjust to post-pandemic realities, slower ad spending and shifts in consumer behavior. These cuts reflect wider economic trends where rapid inflation, shifting purchasing patterns and interest rate sensitivity influence corporate workforce strategies.

In this environment, companies are placing greater emphasis on efficiency, return on investment and sustainable growth models. The tech industry’s pivot away from expansion at all costs and toward profitability is reshaping job markets, compensation expectations and hiring practices industry-wide.

The impact of Amazon’s layoffs extends beyond the company’s internal operations, with ripple effects on local job markets, particularly in Seattle and other tech hubs where Amazon has historically been a major employer. Corporate layoffs may reduce demand for supporting services and heighten competition for roles in engineering, product development and tech leadership.

At the same time, displaced employees may find opportunities in startups, adjacent industries, consulting, or freelance work — trends that have defined tech labor dynamics in recent years. However, transitions can be challenging, especially when employers across multiple sectors face similar headwinds.

As Amazon moves forward with its next round of corporate job cuts, the company and its workforce will be navigating a period of transition. How successfully Amazon balances cost discipline with innovation investment could shape its trajectory in retail, cloud computing, logistics and advertising sectors. Meanwhile, affected employees will seek new opportunities and adapt to an evolving labor market that continues to shift in response to economic, technological and competitive forces.