Big layoffs at Amazon, big implications for Seattle’s economy

**Amazon Announces Major Corporate Layoffs Amid Industry-Wide Cutbacks**

*Posted by algore*

Seattle-based retail giant Amazon has confirmed it will cut approximately 14,000 corporate jobs, with employees beginning to receive layoff notices starting Tuesday. The exact number of positions affected in Washington state remains unclear.

Nick Pasion, a reporter for the Puget Sound Business Journal who covers big tech, shared insights from Amazon employees who say their managers are remaining tight-lipped. However, “there is a palpable sense of fear within the company,” as many are concerned about the possibility of being impacted personally or seeing friends lose their jobs.

Amazon employs about 350,000 corporate workers globally, making the potential reduction of up to 14,000 jobs a substantial cut. Todd Bishop, co-founder of GeekWire, highlighted the magnitude: “If you’re talking about up to 30,000 cuts globally, that’s a pretty significant portion.”

While Amazon has yet to confirm the layoffs publicly or provide an official reason, some analysts suggest the moves may be part of post-pandemic downsizing efforts. According to Pasion, “Amazon notoriously overhired during the pandemic, increasing headcount by tens of thousands.” The company has already taken steps to correct this, laying off 27,000 employees across 2022 and 2023.

An emerging theory is that Amazon is shifting focus to reinvest in artificial intelligence (AI) infrastructure. “Data centers, chips, power — these are incredibly expensive to build and maintain,” said Pasion. “Many companies are diverting free cash flow into AI infrastructure and hiring high-paid AI scientists to develop internal models.”

Amazon is not alone in facing tech industry layoffs. Microsoft, another Puget Sound-area giant, has cut 15,000 positions globally this year.

**Microsoft Faces Political Backlash Over Visa Program Amid Layoffs**

Vice President J.D. Vance publicly criticized Microsoft for recent job cuts juxtaposed with continued applications for H-1B work visas. “I don’t want companies to fire 9,000 American workers and then say they can’t find workers in America,” Vance declared.

Former White House advisor Steve Bannon echoed these concerns, calling for a halt to all visa programs during widespread layoffs.

Social media users have amplified the controversy by noting reports that Microsoft filed over 14,000 H-1B visa requests in 2025, fueling outrage over perceived exploitation of the visa system despite significant workforce reductions.

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