Amazon is reportedly preparing to cut thousands of corporate jobs next week as part of its broader plan to reduce its workforce by 30,000 positions, according to Reuters sources. The planned layoffs represent some of the largest workforce reductions in the company's history and will likely impact white-collar roles across multiple key divisions.

Affected Divisions and Scale

The upcoming job cuts are expected to impact several major business units within Amazon's corporate structure:

Sources indicate that these plans could still change, and Amazon declined to provide official comment on the reported layoffs.

Progress Toward 30,000 Job Reduction Target

Amazon has been systematically working toward its goal of cutting 30,000 positions from its corporate workforce. The company already eliminated 14,000 white-collar jobs in October, representing approximately half of its targeted reduction. The upcoming cuts are expected to continue this trajectory toward the full 30,000 position target.

Leadership Rationale Behind Cuts

CEO Andy Jassy has provided specific reasoning for the workforce reductions, emphasizing organizational efficiency over financial pressures. During the company's third-quarter earnings call, Jassy clarified that the reduction was "not really financially driven and it's not even really AI-driven." Instead, he attributed the cuts to cultural and structural issues within the organization.

"It's culture," Jassy explained, noting that the company has accumulated "a lot more people than what you had before, and you end up with a lot more layers." This suggests Amazon is focused on reducing bureaucratic complexity and streamlining its corporate structure.

AI Impact and Future Workforce Evolution

While Jassy downplayed AI as the primary driver of current cuts, Amazon has acknowledged the transformative potential of artificial intelligence on its workforce. The company initially tied its October layoffs to AI advancements, describing the current generation of AI as "the most transformative technology we've seen since the Internet."

Jassy has indicated that Amazon's corporate workforce is expected to shrink over time as the company realizes efficiencies from AI implementation. The company showcased its latest AI models during its annual AWS cloud computing conference in December, highlighting its commitment to automation and technological advancement.

Employee Transition and Historical Context

Workers affected by the October layoffs were provided a 90-day transition period during which they remained on payroll and could apply for internal positions or seek external employment. This transition period expires on Monday, coinciding with the timing of the reported new round of cuts.

The planned 30,000 job reductions would represent the largest layoff in Amazon's three-decade history, surpassing the approximately 27,000 positions eliminated in 2022. While significant in absolute terms, these cuts represent a small portion of Amazon's total 1.58 million employees, with the majority of workers employed in fulfillment centers and warehouses rather than corporate roles.

Amazon Web Services has announced a significant supply agreement with Rio Tinto's Nuton venture, securing a two-year copper supply contract from an Arizona mine. The deal is strategically positioned to support the growing infrastructure demands of AWS's artificial intelligence data centers.

Strategic Partnership Details

The partnership between AWS and Rio Tinto's Nuton venture represents a direct supply chain approach to meet the increasing copper requirements for AI infrastructure development. The agreement ensures a steady supply of copper from Rio Tinto's Arizona mining operations over the next two years.

AI Infrastructure Requirements

The copper supply agreement directly addresses the substantial material requirements for AWS's expanding AI data center operations. Copper plays a critical role in data center infrastructure, particularly in power distribution systems, cooling mechanisms, and networking equipment essential for AI computing operations.

Market Implications

This supply agreement reflects the broader trend of technology companies securing direct partnerships with mining operations to ensure reliable access to critical materials. The deal demonstrates AWS's proactive approach to supply chain management as the company continues to expand its AI and cloud computing infrastructure capabilities.