Amazon's 30,000 Job Cuts: Reconstructing Corporate Survival Philosophy After the Ebb of the Tech Boom

Recently, foreign media reported that Amazon plans to cut up to 30,000 jobs. This largest-scale layoff since the end of 2022, like a heavy hammer, has sounded the alarm for the tech industry's rational return after its frenzied expansion. From "recruiting extensively" during the pandemic to "streamlining the workforce" now, Amazon's move is not only a strategy to cope with current difficulties but also a reflection of the reconstruction of tech companies' survival philosophies amidst era changes.

The Bursting of the Expansion Bubble: From "Wild Growth" to "Rational Slimming Down"

During the pandemic, e-commerce demand experienced explosive growth, and Amazon embarked on a(translated as "frenetic expansion spree" for a more vivid expression). From 2020 to 2022, its workforce soared like a rocket, with an addition of 740,000 employees, and the global headcount exceeded 1.6 million. Warehousing centers sprang up like mushrooms after rain, and the logistics network continued to expand, as if it were an unending "tech carnival."

However, all carnivals must come to an end. As the pandemic dividends gradually faded, consumer spending patterns underwent profound changes. Online shopping growth slowed down, and Amazon's revenue growth rate also plummeted. In the first quarter of 2025, the growth rate of North American retail sales dropped from 9.5% to 7.6%, and the international business growth rate was as low as 4.9%. At the same time, the high operating costs brought about by the previous expansion, such as workforce redundancy and overstocked warehouses, became increasingly prominent, acting like heavy shackles that weighed the company down. At this point, layoffs became Amazon's inevitable choice for "rational slimming down," aiming to reduce operating costs by cutting non-core positions to sustain the company's survival and development.

The Impact of the AI Wave: Job Restructuring Under Technological Substitution

In today's era of rapid technological development, the AI wave is sweeping in at an unprecedented speed, posing a strong (translated as "impact" here) on traditional jobs. Amazon CEO Andy Jassy has repeatedly emphasized that the widespread application of generative AI will reshape the human resource structure. In the AWS department, AI tools have been able to automate software development and daily tasks, resulting in the loss of jobs for hundreds of employees; in the retail department, AI optimizes supply chain management, reducing reliance on manual scheduling.

This technological substitution is not simply the disappearance of jobs but rather job restructuring. Jassy pointed out that in the future, the demand for certain repetitive and routine jobs will decrease, but the number of AI-related jobs will increase significantly. This requires companies to re-examine their talent structures, shift resources towards AI technology research and development and application areas, and cultivate and attract professionals with AI skills. For employees, they also need to continuously upgrade their skills to adapt to the job changes brought about by technological transformations; otherwise, they may be washed away by the tide of the times.

The Reshaping of the Competitive Landscape: From "Diversified Expansion" to "Focusing on Core Business"

In today's increasingly fierce global tech market competition, Amazon faces challenges from all sides. In the cloud computing field, Microsoft Azure and Google Cloud, with their strong technological capabilities and market shares, are constantly eating into Amazon's market; in the e-commerce arena, local giants such as Alibaba, JD.com, and Pinduoduo are rapidly rising in cross-border business, and Amazon's Chinese business is gradually being marginalized.

To stand invincible in the fierce competition, Amazon has had to adjust its strategy, shifting from "diversified expansion" to "focusing on core business." This round of layoffs involves multiple business lines, but core businesses such as AWS and the core aspects of e-commerce have been given key protection. By cutting non-core businesses, Amazon can concentrate more resources on its core businesses to enhance its core competitiveness. At the same time, it is increasing investment in cutting-edge technology fields such as generative AI to drive corporate development through technological innovation and consolidate its market-leading position.

Industry Insights: Reconstructing the Survival Philosophy of Tech Companies

Amazon's 30,000 job cuts have sounded the alarm for the entire tech industry. After the ebb of the tech boom, companies need to re-examine their survival philosophies. They can no longer blindly pursue scale expansion but should focus on quality and efficiency; they can no longer ignore the impact of technological transformations but should actively embrace new technologies to promote job restructuring and talent upgrading; they can no longer disperse resources for diversified expansion but should focus on core businesses to create differentiated competitive advantages.

The development of the tech industry is like a ship sailing in the ocean, sometimes calm and sometimes turbulent. In the wave of frenzied expansion, companies need to keep a clear head and make rational decisions; in the wave of technological transformations, companies need to actively respond and be brave in innovation. Only in this way can they stand invincible in the changes of the times and achieve sustainable development. Amazon's layoff action is precisely a microcosm of the reconstruction of tech companies' survival philosophies amidst era changes and also provides valuable references and insights for other companies.