The so-called "everything store" is about to put 30,000 people out of work, according to sources. This would mark the company's largest round of layoffs since 2021 as AI, cost-cutting and post-pandemic bloat come to the surface.

While still a rumour at this stage, it's being picked up in pre-market trading ($AMZN trades on the NASDAQ) as the company readies an email to all staff come Tuesday-morning US-time.

At its core, the rumoured cuts reflect a classic cost-cutting play. Something that usually comes as music to the ears of investors. After several quarters of mixed results and a cooling e-commerce boom, Amazon (like other big US tech companies) is now under margin pressure. Amazon’s international retail segment has struggled to remain profitable, and the company faces persistent challenges from inflation, currency swings and changing consumer habits.

But is this simply about saving money? 30,000 is a huge number of layoffs. Such a scale of reported cuts suggests something deeper might be going on beyond just another corporate belt-tightening exercise.

Sources closer to the layoff rumours have pointed to "right-sizing" following a massive add of staff to Amazon during the COVID-19 pandemic. But this round of job cuts is reportedly targeting more corporate staffers instead of just warehouse workers.

Perhaps the most far-reaching reason behind the cuts is the rise of artificial intelligence and automation. Amazon has invested billions in machine learning, robotics and AI-driven logistics, with direct impacts on everything from customer service to supply chain optimisation. In practical terms, this means fewer people required to do the same — or more — work.

The tech world has long promised that AI would “free up” workers for higher-value tasks. But at this scale, the short-term reality is blunt: thousands may be made redundant as algorithms and robots step in.

Either way, investors are still probably set to sing to CEO Andy Jassy's tune if it turns out to be true when the sun comes up in New York.