Amazon’s largest layoff wave in its 31-year history has revealed a harsh reality for the tech workforce: engineers, once seen as untouchable, are now on the front lines of corporate cost-cutting. Nearly 40% of the 4,700+ job cuts across key U.S. states were engineering roles, according to WARN filings.
While Amazon’s layoffs touched nearly every business unit — from AWS and retail to devices and advertising — the heaviest hit came in engineering. In filings submitted in New York, California, New Jersey, and Washington, Amazon reported that a significant chunk of those let go were software developers, particularly mid-level SDE II engineers.
This is only a partial glimpse, as WARN disclosures vary by state. But the trend is clear: Amazon is aggressively trimming the very roles that once formed its innovation backbone.
CEO Andy Jassy, pushing to reshape Amazon into what he calls “the world’s largest startup,” has made organizational streamlining a priority. “We need to be organized more leanly, with fewer layers and more ownership,” HR chief Beth Galetti wrote in her layoff memo, emphasizing the pressure to move faster with fewer people.
The company insists AI isn’t the primary 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 compress the need for human developers.
The damage didn’t stop at engineering. Over 500 product and program managers lost jobs. In California, Amazon’s gaming studios faced “significant role reductions,” shuttering major MMO projects. Visual search teams behind Amazon Lens were gutted, and more than 140 ad sales and marketing staff in New York were let go.
In all, Amazon’s layoffs reflect a deeper shift: big tech’s post-COVID hiring spree has ended, and engineers are no longer shielded from market forces. The AI boom may be driving innovation, but it’s also rewriting the job security rulebook for tech’s core talent.