Global e-commerce and technology giant Amazon is reportedly preparing to lay off as many as 30,000 corporate employees, with notifications beginning as early as Tuesday, October 28, 2025, according to multiple international media reports citing sources familiar with the matter. The move, which would be the largest job cut in the company's history, is attributed to a broader strategy of cost reduction, reversing a massive hiring surge during the COVID-19 pandemic, and a significant strategic pivot towards investment in Artificial Intelligence (AI).

An Amazon spokesperson has declined to comment on the reports.

The reported cuts represent nearly 10% of Amazon's approximately 350,000-strong corporate workforce. However, they are not expected to affect the majority of the company's 1.55 million global employees, who work in warehouse and distribution roles. According to reports from Reuters and Bloomberg, the layoffs will impact several divisions, including human resources (known as People Experience and Technology), logistics, payments, video games, and the company's highly profitable cloud computing division, Amazon Web Services (AWS).

Implications for Kenya's Tech Hub

The inclusion of AWS in the reported layoffs carries direct significance for Kenya. In October 2023, Amazon inaugurated a major AWS Development Centre in Nairobi, an event attended by President William Ruto and lauded as a landmark investment that would create highly skilled jobs and cement Kenya's status as a continental tech hub. The centre was established to house research and development teams building solutions for AWS customers globally. While the specific impact on the Nairobi office remains unconfirmed, the global restructuring within AWS raises concerns about the stability and growth prospects of local operations. FURTHER INVESTIGATION REQUIRED.

The news also arrives amidst a challenging period for Kenya's own tech ecosystem, which has seen a series of layoffs and company shutdowns over the past two years due to economic headwinds and funding challenges. A global downturn in tech hiring, now increasingly linked to AI-driven efficiency, could further pressure the local job market for skilled tech professionals.

AI, Efficiency, and a Shifting Workforce

The layoffs are explicitly linked to Amazon's deepening investment in AI. The company plans to increase capital expenditures to over $100 billion in 2025, with a majority directed towards building AI capacity within AWS. Amazon CEO Andy Jassy has been vocal about the transformative potential of AI on the company's workforce. In a public memo to employees in June 2025, Jassy stated, "We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs." He added, "in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company."

Analysts suggest this move is part of a broader industry trend where major tech firms like Google, Microsoft, and Meta are restructuring to prioritize AI, leading to significant job cuts. According to the tracking website Layoffs.fyi, over 98,000 tech jobs have been eliminated globally in 2025 so far.

Market Reaction and Global Context

The planned job cuts follow a period of massive expansion for Amazon, which saw its corporate headcount triple between 2017 and 2022. This round of layoffs would surpass the 27,000 roles eliminated between late 2022 and early 2023. News of the cost-cutting measure was met with a positive response from the market, with Amazon's shares rising 1.2% on Monday, October 27, ahead of its quarterly earnings report scheduled for later this week.

The move underscores a global shift in the technology sector, moving away from the rapid growth-at-all-costs mindset of the pandemic era towards a focus on leaner operations, profitability, and the strategic deployment of AI to automate tasks and improve efficiency. For Kenya, a nation striving to be a key player in the digital economy, these global realignments by tech giants like Amazon serve as a critical indicator of future opportunities and challenges in the evolving world of technology and employment.