Post by : Badri Ariffin

Amazon’s extensive restructuring has brought about one of the most significant layoffs in its history, with a severe impact on engineering teams across various U.S. locations. In October 2025, over 14,000 employees were laid off, signifying a major reset that affected virtually every division—from cloud services and devices to retail, advertising, and grocery sectors.

State labor filings have highlighted the depth of these cuts, showing that more than 4,700 positions were eliminated in states like New York, California, New Jersey, and Washington, where nearly 40% of these losses were in engineering roles. This data only partially reflects Amazon’s broader national restructuring, as disclosure practices vary by state.

Within the company, these changes are viewed as an effort to streamline operations and decrease layers of decision-making. Although Amazon insists that artificial intelligence was not the primary catalyst for these layoffs, it recognizes that technological advancements are transforming workflows and diminishing the necessity for certain white-collar roles.

Mid-level and senior positions were heavily affected, particularly among SDE II engineers—Amazon’s mid-tier software developers—who experienced the highest number of reductions. Additionally, over 500 product and program managers were impacted, accounting for more than 10% of reported WARN notices. Some senior and principal staff members were also among those laid off.

Moreover, Amazon's gaming division witnessed significant job losses. WARN filings from California confirm substantial cuts in the company’s San Diego and Irvine studios, along with central publishing teams. In Irvine, roles such as game designers, producers, and artists constituted over a quarter of the layoffs, while around 11% of San Diego's affected workforce were from similar creative positions.

Additionally, Amazon has curtailed its visual search and shopping teams. The Palo Alto group responsible for projects like Amazon Lens and Lens Live saw software engineers, applied scientists, and quality assurance specialists let go as part of the restructuring. The advertising division was also affected, with over 140 sales and marketing jobs eliminated in New York.

As internal teams adapt to these major changes, Amazon is anticipated to conduct another round of layoffs in January 2026, continuing its trend toward leaner operations and quicker innovation cycles.

#AI #Technology