Amazon (AMZN) Stock: Accidental Email Exposes Massive AWS Layoff Plans

TLDR

• Amazon mistakenly emailed AWS employees about layoffs scheduled for Wednesday, revealing plans before official announcement
• The error exposed “Project Dawn,” Amazon’s internal code name for cutting approximately 30,000 corporate positions
• AWS senior VP Colleen Aubrey’s premature message was quickly recalled after being sent Tuesday evening
• Job cuts will affect AWS, retail, Prime Video and HR teams following 14,000 layoffs in October
• CEO Andy Jassy attributes cuts to AI adoption and efforts to eliminate management bureaucracy

Amazon’s cloud division learned about impending layoffs the hard way Tuesday. An accidental email spilled the beans about job cuts planned for Wednesday morning.

Amazon.com, Inc., AMZN

The message came from Colleen Aubrey, a senior vice president in Amazon Web Services. She told employees that affected workers had already been informed. They hadn’t been.

The email referenced “Project Dawn,” Amazon’s internal name for the layoffs. A scheduled team meeting was canceled almost immediately after the message went out. AWS employees shared screenshots in Slack channels.

“These decisions are difficult and are made thoughtfully as we position our organization and AWS for future success,” Aubrey wrote. Amazon hasn’t responded to requests for comment about the mishap.

The premature notification reveals a much larger story. Amazon is preparing to cut roughly 30,000 corporate positions across the company.

Multiple Divisions Face Job Eliminations

The layoffs won’t stop at AWS. Prime Video, retail operations and human resources will all see cuts this week.

Amazon already eliminated 14,000 jobs in October. Those cuts were just the beginning of this broader reduction plan. The full 30,000 positions represent nearly 10% of Amazon’s corporate workforce.

CEO Andy Jassy outlined the strategy behind the cuts last year. He wants fewer management layers and less bureaucracy. He also said artificial intelligence would naturally reduce the need for corporate staff.

Beth Galetti, Amazon’s HR chief, wrote about the October layoffs in a blog post. She hinted that more cuts would follow. The mistaken email Tuesday referenced Galetti’s post, though it hasn’t been published on Amazon’s website yet.

Grocery Operations Also Getting Trimmed

Amazon announced separate grocery division cuts on Tuesday. The company is shuttering Fresh supermarkets and Go convenience stores.

Resources will shift to Whole Foods locations and online grocery delivery. Jason Buechel, who leads Amazon’s grocery operations, told staff the company needs to make smarter choices about where to invest.

The grocery restructuring eliminated an undisclosed number of jobs. Amazon didn’t provide specific figures.

All of this comes ahead of Amazon’s earnings report on February 5. Investors will get fourth-quarter results after the bell.

Amazon employs 1.58 million people worldwide. Most work in warehouses and delivery networks. The corporate cuts affect a relatively small percentage of total headcount.

The email blunder puts Amazon in an awkward position. The company wanted to control the message around sensitive job cuts. Instead, employees learned through an accidental leak.

Reuters first reported the planned layoffs on Friday. Amazon still hasn’t officially confirmed the cuts or provided details about which roles will be eliminated. Wednesday morning should bring clarity for thousands of worried employees.