Amazon’s Retail Unit Halts Hiring Budget Growth for 2025 in Cost-Cutting Shift
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Amazon freezes retail hiring budget for 2025, shifting to cost-focused staffing while allowing flexibility for critical business needs.
Amazon is tightening the reins on hiring within its retail division for 2025, opting to maintain flat headcount-related expenses in a strategic pivot toward tighter budget controls. An internal memo obtained by Business Insider reveals that all new hires will now require “strong supporting reasons” and be subjected to intense scrutiny as part of this cost-containment effort.
The hiring freeze applies to corporate roles within Amazon’s retail businesses—including its flagship online marketplace, logistics operations, and Fresh grocery division. However, this policy does not affect warehouse workers or employees within Amazon Web Services (AWS), the company’s cloud computing arm.
This decision marks a shift from traditional headcount-based hiring to a more stringent, budget-driven model. Instead of filling a set number of roles, managers will now be allocated fixed budgets and expected to make staffing decisions within those financial boundaries. This shift offers more flexibility to use contract or temporary workers as needed while enforcing a leaner organizational structure.
Zoe Hoffman, an Amazon spokesperson, clarified that hiring has not entirely stopped. “Each business unit operates independently, and hiring continues where there's a justified need,” she said, describing the approach as a responsible method to manage long-term growth at Amazon’s scale.
This move is the latest in CEO Andy Jassy’s broader efficiency campaign, which began after he took the helm in 2021. Over the past two years, Amazon has cut 27,000 jobs, restructured compensation, and flattened its organizational layers. These efforts have contributed to record financial results, with Amazon posting $59 billion in profit for 2024—nearly double the previous year’s total.
Retail CEO Doug Herrington emphasized continued vigilance over costs. At a recent internal meeting, he told staff that further spending cuts are likely in 2025, stating, “We have to keep reducing costs so that we can afford the big investments in big new businesses.”
The new budget-focused strategy allows Amazon to remain agile while controlling costs, empowering managers to balance operational efficiency with evolving business priorities.
