Amazon’s largest wave of layoffs in its 31-year history has revealed a harsh reality for the tech workforce: Engineers, once considered untouchable, are now on the front lines of companies’ cost-cutting efforts. Nearly 40% of the more than 4,700 job cuts in major U.S. states were for engineering positions, according to WARN filings.
While Amazon’s layoffs hit nearly every business unit — from AWS and retail, to devices and advertising — the biggest blow came in engineering. In filings submitted in New York, California, New Jersey and Washington, Amazon said a significant portion of those laid off were software developers, particularly mid-level SDE II engineers.
This is only a partial overview, as WARN information varies by state. But the trend is clear: Amazon is aggressively reducing the very roles that once made up its innovation backbone.
CEO Andy Jassy, who is working to transform Amazon into what he calls “the biggest startup in the world,” has made organizational streamlining a priority. “We need to be organized in a simpler way, with fewer layers and more ownership,” HR manager Beth Galetti wrote in her termination memo, highlighting the pressure to move faster with fewer people.
The company insists that AI is not the main driver of the cuts, but its fingerprints are all over this restructuring. Amazon has launched its own coding assistant, Kiro, and is investing billions in AI tools to automate workflows — changes that could further reduce the need for human developers.
The damage was not limited to engineering. More than 500 product and program managers lost their jobs. In California, Amazon’s game studios faced “significant role reductions”, shutting down major MMO projects. The visual search teams behind Amazon Lens have been gutted and more than 140 ad sales and marketing employees in New York have been laid off.
Overall, Amazon’s layoffs reflect a deeper shift: Big Tech’s post-COVID hiring spree has ended, and engineers are no longer immune to market forces. The AI boom may be driving innovation, but it’s also rewriting the rules of job security for top tech talent.
