Amazon is bracing for another wave of significant layoffs in 2025, with reports indicating that the tech giant plans to cut 10% of its workforce, primarily within its Amazon Web Services (AWS) division. Even more striking is the potential impact on Principal-Level (L7) roles, with nearly 25% of these senior positions reportedly at risk.
Why the Layoffs?
The move comes amid Amazon’s broader push to streamline operations, reduce costs, and integrate AI-driven efficiencies. CEO Andy Jassy recently acknowledged that artificial intelligence is reshaping job requirements across the company, stating, “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”
AI and Organizational Restructuring
Internal reports suggest that Amazon is increasingly relying on AI tools and virtual agents, which are replacing roles traditionally held by humans. The layoffs are part of a strategic shift to flatten hierarchies, especially targeting high-compensation roles like Principal Engineers. Performance Improvement Plans (PIPs) and Reduction in Force (RIF) measures are being used to manage attrition quietly.
Divisions Affected
The job cuts are not limited to AWS. Employees in the Devices and Services division, Books business, and Wondery podcast group have also been impacted. Termination emails were reportedly sent on July 17, 2025, with immediate system deactivations following.
Financial Context
Despite the layoffs, AWS reported a 17% rise in sales, generating $29.3 billion in revenue this month. However, Amazon’s leadership appears focused on long-term profitability and agility, rather than short-term growth metrics