Amazon Layoffs Hit Retail Managers Hardest. AWS Could Be Next.

Amazon job cuts on Tuesday heavily impacted early to mid-level managers in the retail division, according to internal data obtained by Business Insider. Some employees are now worried Amazon Web Services could be next.

More than 78% of the roles eliminated on Tuesday were held by managers assigned L5 to L7 designations, the internal data obtained by BI showed. This data focuses mostly on US operations. L5 is typically the starting point for managers at Amazon, with more seniority assigned to higher levels.

The US-focused data also showed that more than 80% of the employees ousted on Tuesday worked in Amazon’s retail business, spanning e-commerce, human resources, and logistics.

The job cuts highlight Amazon’s push to streamline its management structure and reduce bureaucracy. CEO Andy Jassy has sliced the manager-to-employee ratio by 15% this year as part of a broader effort to instill more discipline and reshape the company’s culture. The focus on retail employees also reflects Amazon’s drive for increased efficiency and higher profit margins in its most mature business.

The data is a breakdown of roughly 7,500 employees who first received layoff notices on Tuesday. Most of these employees were based in the US. The other roughly 6,500 employees impacted by Tuesday’s job cuts were mostly spread across different regions, including India and Europe, a person directly involved in the matter told Business Insider.

An Amazon spokesperson didn’t respond to a request for comment. The company announced on Tuesday that it planned to cut 14,000 corporate jobs to be leaner and “innovate much faster.” The job cuts are part of a wave that could potentially total 30,000, according to Reuters and the Wall Street Journal.

AWS employees are worried

According to the internal data, about 5% of the cuts hit the advertising team, while less than 1% affected AWS.

However, several employees told Business Insider that additional job cuts are expected early next year, with a greater emphasis on AWS. According to one of the people, some AWS teams were recently instructed to cut headcount by 5% in 2025 and by 10% in 2026. These people asked not to be identified because they’re not authorized to speak to the media.

On Tuesday, HR chief Beth Galetti said the reductions were part of an ongoing effort to run Amazon “like the world’s largest startup.” Although the company is performing well, it is reducing staff because the rapid rise of AI is transforming the business landscape, she explained. Amazon will continue hiring, while finding “additional places we can remove layers,” Galetti added.

Amazon’s retail division had already begun tightening its belt. The company froze its retail hiring budget earlier this year, and leadership has stressed cutting waste to free up funds for expanding faster delivery and broadening product selection. Several employees told Business Insider that a widespread retail hiring freeze remains in effect, with only a handful of backfill positions getting approved.

For the retail team, cost-cutting has become more critical than ever. Amazon is aggressively expanding its faster delivery network and grocery business—both lower-margin ventures—while pouring resources into robotics, automation, and AI to drive long-term efficiencies.

Have a tip? Contact this reporter via email at [email protected] or Signal, Telegram, or WhatsApp at 650-942-3061. Use a personal email address, a nonwork WiFi network, and a nonwork device; here’s our guide to sharing information securely.