Amazon's Latest Workforce Reduction Hits Seattle Hard: Over 2,000 Local Jobs Cut
Originally reported by MyNorthwest.com
SEATTLE — Amazon's latest wave of layoffs has deeply impacted its home region, with state filings revealing more than 2,000 employees in the Seattle metropolitan area have lost their jobs. The cuts are part of a broader corporate restructuring that has eliminated approximately 16,000 positions globally since January.
Data from Washington's Employment Security Department shows 2,198 local workers were affected, including over 1,400 in Seattle and 630 in Bellevue. Software development engineers appear to have borne the brunt of the reductions.
This marks the second major round of layoffs at the e-commerce behemoth in three months, following 14,000 cuts announced in October. In a blog post, Senior Vice President Beth Galetti described the moves as part of an effort to "reduce layers, increase ownership, and remove bureaucracy" within the company.
The layoffs arrive amid a paradoxical period for Amazon: record profits juxtaposed with strategic contraction. The company recently reported quarterly profits soaring nearly 40% to $21 billion, yet continues to trim a workforce that ballooned during the pandemic's online shopping surge.
Analysts note a dual strategy at play. While cutting corporate roles, Amazon is simultaneously investing heavily in generative artificial intelligence—a technology CEO Andy Jassy has acknowledged could reduce certain corporate functions over time. The company maintains it continues hiring in "strategic areas critical to our future."
The local impact extends beyond Amazon's campuses. UPS recently announced plans to cut up to 30,000 jobs, partly attributed to reduced shipment volumes from Amazon. This ripple effect underscores Amazon's outsized influence on the regional economy.
In a related strategic shift, Amazon confirmed Tuesday it will shutter all 72 of its Amazon Fresh and Amazon Go physical grocery stores nationwide by early February, consolidating its grocery focus around Whole Foods Market and online delivery.
Community Voices:
"This hits home," says Michael Torres, a software engineer who worked at Amazon for eight years before starting his own consultancy. "Many of my former colleagues are now updating their LinkedIn profiles. The tech ecosystem here is resilient, but losing this many experienced engineers at once will have consequences for innovation."
Sarah Chen, a small business owner in South Lake Union, expresses concern: "Amazon employees are our customers. When thousands suddenly lose their jobs, our coffee shops, lunch spots, and retail stores feel it immediately. It's a worrying domino effect."
"It's corporate greed, plain and simple," states David Miller, a community organizer with Tech Accountability Now. "Record profits of $21 billion, and they're throwing thousands of families into uncertainty while pushing AI that'll eliminate more jobs. They're hollowing out the very community that supported their growth."
Priya Sharma, an economics professor at the University of Washington, offers a broader perspective: "This reflects a national recalibration in tech. Companies over-hired during the pandemic boom and are now rightsizing. The Seattle area's diversified tech sector will absorb many, but the transition will be painful for some households."
Affected U.S. employees have been given 90 days to seek internal transfers before their severance packages—which include outplacement services and continued health benefits—take effect. The Washington State Employment Security Department is coordinating rapid-response services for displaced workers.
Contributing: The Associated Press