Amazon just revealed the brutal math behind its historic layoffs. Nearly 40% of the 4,700 positions eliminated across four states were engineers - roughly 1,900 technical roles axed even as CEO Andy Jassy claims the company needs to "innovate much faster than ever before." The contradiction exposes Amazon's deeper struggle with AI disruption and bureaucratic bloat.
Amazon just dropped the most contradictory corporate memo of 2025. While HR chief Beth Galetti told employees that "this generation of AI is the most transformative technology we've seen since the Internet" and the company needs to "innovate much faster than ever before," the tech giant simultaneously eliminated nearly 1,900 engineering jobs - 40% of its total layoffs.
The stark numbers emerged from Worker Adjustment and Retraining Notification filings across Washington, New York, New Jersey, and California, representing just a portion of Amazon's record 14,000+ job cuts announced in October. Mid-level software engineers bore the heaviest burden, with SDE II roles disproportionately affected according to state documents reviewed by CNBC.
CEO Andy Jassy's vision of transforming Amazon into "the world's largest startup" now means doing more innovation with fewer innovators. The company gutted entire technical teams, including its visual search and shopping unit responsible for AI-powered tools like Amazon Lens and Lens Live, which ironically launched just two months ago.
The gaming division took particularly brutal cuts across San Diego and Irvine studios. Steve Boom, VP of Audio, Twitch and Games, announced "significant role reductions" while Amazon simultaneously halted development of big-budget MMO games, including a highly anticipated "Lord of the Rings" title. Game designers, artists, and producers represented over 25% of Irvine cuts.
Amazon's advertising business, one of its biggest profit centers, wasn't spared either. More than 140 ad sales and marketing roles vanished from New York offices alone - 20% of cuts in that region. This comes as the company faces intensifying competition from Google and Meta in digital advertising.
The engineering exodus reflects a broader tech industry paradox. While companies like Microsoft, Google, and Meta have collectively eliminated 113,000 jobs across 231 companies this year according to , they're simultaneously investing billions in AI development that supposedly requires top engineering talent.
