An IT veteran reflects on news of Amazon laying off 30,000 corporate employees

An IT Industry Veteran’s Deep Dive into Amazon’s Massive Layoff Announcement and Broader Market Implications

As an IT veteran who has witnessed numerous corporate transformations and waves of layoffs over the years, the recent announcement by Amazon to cut 30,000 jobs right before the holiday season caught my attention—and it deserves a deeper look beyond the headline number.

The 30,000 Figure: A Starting Point, Not the Full Story

While 30,000 is a significant count, it likely does not capture the full scale of workforce reductions. Industry insiders know that many reductions happen quietly through voluntary exits or “soft” layoffs disguised as resignations accompanied by severance packages. This practice, especially prevalent in regions like India, means that thousands more employees may be impacted without appearing in official layoff statistics.

In Amazon India’s case, rather than formal layoffs, affected workers are often asked to resign voluntarily with severance — a form of Reduction in Force (RIF) that blurs transparency. These so-called “resignations” don’t get reported as layoffs but represent real job losses. Given Amazon's large employee base in India — estimated at around 110,000 across corporate and fulfillment centers — the ripple effects here are substantial.


Amazon - the Canary in the CoalMine

Amazon’s high-profile cuts are part of a wider trend affecting top-tier tech companies, particularly FAANG and major IT services firms. Many are quietly implementing their own RIFs, some making headlines and others going under the radar for now. This wave signals a seismic shift in the tech employment landscape:

  • Accenture is laying off 11,000 employees 
  • Microsoft is letting go of 7,000 employees 
  • Target is cutting about 1,000 jobs 
  • General Motors let go of 200 salaried workers 
  • Rivian is eliminating 600 jobs 
  • NBC News reduced digital staff 
  • Meta made new layoffs in tech teams 
  • F5 Networks cut 106 positions 
  • Oracle laid off 101 workers in Santa Clara 
  • Cruise is halving its U.S. workforce 
  • Paycom, Charter, and WSJ announced layoffs 
  • Applied Materials is cutting 1,444 jobs 
  • Cisco eliminated 221 roles in California 
  • Salesforce trimmed 262 jobs in San Francisco.


What’s Driving These Cuts? AI, Automation, or Something Else?

Industry analysts often point fingers at AI and automation as drivers of job reduction. While automation is accelerating and playing a role in reshaping jobs, the more pressing and fundamental cause is a global economic slowdown. Slowing demand dampens revenue growth, forcing companies to trim costs aggressively.

In the United States—the largest market for Amazon—economic stress is mounting. The partial federal government shutdown threatens paychecks and food assistance for hundreds of thousands of workers and families. Reduced purchasing power at this scale inevitably hits retail sales — whether at brick-and-mortar stores or online giants like Amazon.

The Elephant in the Room: Offshoring and H-1B Visa Policies

A critical factor often overlooked in these discussions is the interconnection between offshoring and H-1B visa regulations. Amazon employs a large number of workers in India, and reports suggest 20-25% of its corporate workforce (especially in IT and business services) is based there.

Former President Trump's changes to the H-1B visa regime have not eased pressures on tech hiring in the U.S. As of mid-2025, Amazon was the largest sponsor of H-1B visas with over 10,000 employees in the United States under this program. The question arises: could Amazon offset U.S. job cuts by expanding its hiring in India, effectively offshoring roles it once filled locally?

This dynamic creates challenging tensions between labor markets on two continents and raises important questions about the future of tech employment, immigration policies, and the global distribution of work.

Bottomline: Amazon’s announcement marks a pivotal moment reflecting broader underlying economic and structural challenges for the IT sector. Beyond the initial 30,000 layoffs, expect continued voluntary and involuntary workforce reductions worldwide, including less visible ones in India and other offshore locations.

For tech professionals, companies, and policymakers alike, understanding the complex interplay of economic slowdown, automation, offshoring, and visa regulations is crucial as this landscape continues to evolve rapidly.

Author: Mohan K

Links

Reuters Exclusive: Amazon targets as many as 30,000 corporate job cuts, sources say

Two major US tech companies announce mass layoffs amid Artificial Intelligence boom

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