Amazon has announced a freeze on its retail hiring budget for 2025, signaling a shift in its workforce strategy amid ongoing cost-cutting measures.
The decision, revealed through an internal email, indicates that the company will maintain a flat headcount operating expense compared to the previous year.
While Amazon has clarified that hiring will continue, the freeze applies specifically to corporate staff in its retail division, excluding warehouse workers and employees in Amazon Web Services (AWS).
The move aligns with CEO Andy Jassy’s broader efficiency drive, which has already led to job cuts in multiple divisions, including Kindle and Goodreads.
Amazon Workforce Strategy Shift
The hiring budget freeze reflects Amazon’s new approach to workforce management, shifting from headcount targets to fixed operating budgets.
This means that retail managers must operate within predefined financial limits, rather than focusing on expanding their teams.
An Amazon executive previously stated that any increase in hiring budgets would face intense scrutiny, requiring strong justifications.
The company aims to optimize resources while maintaining profitability and operational efficiency.
Job Cuts Across Divisions
Amazon’s decision to freeze hiring budgets follows a series of job cuts across various business units:
- Books Division: Fewer than 100 employees were laid off in Kindle and Goodreads, as part of efforts to streamline operations.
- Devices & Services Unit: Amazon recently eliminated roles in its hardware division, affecting employees working on Alexa and Echo products.
- Wondery Podcast Division: The company also trimmed staff in its audio content business, reflecting a shift in priorities.
Despite these reductions, Amazon added approximately 4,000 jobs in the first quarter of 2025, demonstrating a strategic balance between workforce cuts and expansion.
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