Amazon cut thousands of engineers in its record layoffs, despite saying it needs to innovate faster

Amazon‘s 14,000-plus layoffs announced last month touched almost every piece of the company’s sprawling business, from cloud computing and devices to advertising, retail and grocery stores. But one job category bore the brunt of cuts more than others: engineers.

Documents filed in New York, California, New Jersey and Amazon’s home state of Washington showed that nearly 40% of the more than 4,700 job cuts in those states were engineering roles. The data was reported by Amazon in Worker Adjustment and Retraining Notification, or WARN, filings to state agencies.

The figures represent a segment of the total layoffs announced in October. Not all data was immediately available because of differences in state WARN reporting requirements.

In announcing the steepest round of cuts in its 31-year history, Amazon joined a growing roster of tech companies that have slashed jobs this year even as cash piles have mounted and profits soared. In total, there have been almost 113,000 job cuts at 231 tech companies, according to Layoffs.fyi, continuing a trend that began in 2022 as businesses readjusted to life after the Covid pandemic.

Amazon CEO Andy Jassy has been on a multiyear mission to transform the company’s corporate culture into one that operates like what he calls “the world’s largest startup.” He’s looked to make Amazon leaner and less bureaucratic by urging staffers to do more with less and cutting organizational bloat.

Amazon is expected to carry out further job reductions in January, CNBC previously reported.

The company said it’s also shifting resources to invest more in artificial intelligence. The technology is already poised to reshape Amazon’s white-collar workforce, with Jassy predicting in June that its corporate head count will shrink in the coming years alongside efficiency gains from AI.

Human resources chief Beth Galetti, in her memo announcing the layoffs, focused on the importance of innovating, which the company will now have to do with fewer people, specifically engineers.

“This generation of AI is the most transformative technology we’ve seen since the Internet, and it’s enabling companies to innovate much faster than ever before,” Galetti wrote. “We’re convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.”

Amazon said in a statement that AI is not the driver behind the vast majority of the job cuts, and that the bigger goal was to reduce bureaucracy and emphasize speed.

Jassy said on Amazon’s earnings call last month that the cuts were in response to a “culture” issue inside the company, spurred in part by an extended hiring spree that left it with “a lot more layers” and slower decision-making.

The layoffs impacted a mix of software engineer levels, but SDE II roles, or mid-level employees, were disproportionately affected, the WARN filings show.

The AI boom is making software development jobs harder to come by as companies adopt coding assistants or so-called vibe coding platforms from vendors like Cursor, OpenAI and Cognition. Amazon has released its own competitor called Kiro.

More than 500 product managers and program managers were eliminated as part of the layoffs, based on records from the states with WARN notices, representing more than 10% of the total. Senior manager and principal level roles were also swept up in the cuts, the filings show.

As part of the broader belt-tightening, Amazon has sought in recent years to curtail investments in some of the company’s more experimental or unprofitable initiatives. It sunset a telehealth service, kids video calling device, fitness wearable and several brick-and-mortar retail chains.

Amazon’s video game division was targeted in the company’s latest layoff wave, California WARN filings show. Steve Boom, vice president of Audio, Twitch and Games, told staffers in a memo viewed by CNBC that “significant role reductions” would occur in its San Diego and Irvine, California, game studios, as well as within its central publishing team.

Game designers, artists and producers made up more than a quarter of the total cuts in Irvine, and they were roughly 11% of staffers laid off at Amazon’s San Diego offices, according to filings.

The company also told staffers it’s halting much of its work on big-budget, or triple A, game development, specifically around massively multiplayer online, or MMO, games, Boom wrote. Amazon has released MMOs including Crucible and New World. It was also developing an MMO based on “Lord of the Rings.”

Beyond its gaming division, Amazon also significantly cut back its visual search and shopping teams, according to multiple employee posts on LinkedIn. The unit is responsible for products like Amazon Lens and Lens Live, AI shopping tools that enable users to find products via their camera in real time or images saved to their device. The company rolled out Lens Live in September.

The team was primarily based in Palo Alto, California, and Amazon’s WARN filings indicate that software engineers, applied scientists and quality assurance engineers were heavily impacted across its offices there.

Amazon’s online ad business, one of its biggest profit centers, was downsized as well. More than 140 ad sales and marketing roles were eliminated across Amazon’s New York offices, accounting for about 20% of the roughly 760 positions cut, according to state documents viewed by CNBC.

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