Amazon's Major Restructuring Results in Severe Layoffs for Engineers

Post by : Bianca Suleiman

Amazon's recent restructuring has led to its most significant workforce reduction ever, significantly affecting engineering teams throughout several states in the U.S. In October 2025, over 14,000 jobs were cut, representing a comprehensive reboot that spanned nearly all business areas—from cloud services and devices to retail, advertising, and groceries.

Labour filings submitted in states like New York, California, New Jersey, and Washington reveal the full extent of these layoffs, with more than 4,700 positions eliminated, around 40% of which were engineering roles. These figures illustrate just a fraction of the overall restructuring happening nationally, as not all states provide detailed reports.

Internally, the layoffs are portrayed as an initiative to streamline operations and minimize bureaucratic layers. While Amazon insists that artificial intelligence isn't the main driver behind these reductions, it recognizes that AI is altering workflows and decreasing the demand for specific white-collar positions.

The layoffs predominantly impacted mid-level and senior roles, particularly SDE II engineers who faced the highest volume of job losses. Over 500 product and program managers were also let go, which constitutes more than 10% of the WARN notices recorded. Some senior management and principal roles were not spared either.

In addition to engineering and corporate sectors, Amazon's gaming division encountered substantial cuts. WARN filings from California indicate significant job reductions in the San Diego and Irvine offices, along with central publishing teams. In Irvine, game designers, producers, and artists represented over a quarter of the layoffs, while in San Diego, around 11% of affected staff held similar creative positions.

Moreover, Amazon has diminished its visual search and shopping divisions. The Palo Alto team responsible for innovations like Amazon Lens has seen software engineers, applied scientists, and QA specialists let go. The advertising sector was also impacted, with more than 140 sales and marketing roles axed in New York.

As teams within the company adapt to these sweeping shifts, another round of cuts is anticipated for January 2026, as Amazon aims to foster leaner operations and accelerate its innovation efforts.