Reports have emerged that Amazon is planning to cut up to 30,000 corporate positions in what could be the largest workforce reduction in the tech giant’s history. According to sources cited by Reuters and other media outlets, the cuts could begin as early as 28 October 2025, potentially affecting multiple departments, including operations and logistics, human resources, video games, and Amazon Web Services, representing approximately 10% of the company’s corporate workforce. Amazon has not officially confirmed these reports.
While this news emerges from the United States, it is unknown how many employees within the UK are affected. The scale of Amazon’s restructuring offers important lessons for UK employers navigating redundancy processes, particularly as artificial intelligence continues to reshape workforce requirements across industries.
The AI Factor in Modern Redundancies
Amazon CEO Andy Jassy has been transparent about the role of AI in these job cuts. In June, he indicated that AI tools would enable the company to operate more efficiently with fewer employees, stating: “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”
This represents a growing trend across sectors. As organisations increasingly adopt AI technologies to automate routine tasks, employers must carefully consider how to manage the resulting workforce changes whilst complying with their legal obligations.
Key Employment Law Considerations for Employers
Collective Redundancy Obligations
In the UK, when an employer proposes to make 20 or more employees redundant at a single establishment within a 90-day period, they must follow collective consultation procedures. This requires:
- Notifying the Secretary of State using form HR1 before consultations begin and before any individual notices of dismissal are given
- Consulting with appropriate representatives (trade union or employee representatives)
- Allowing a minimum consultation period of 30 days (for 20-99 redundancies) or 45 days (for 100+ redundancies)
Failure to follow proper collective redundancy procedures can be costly for employers and can result in protective awards of up to 90 days’ pay per affected employee. In addition, failure to submit a HR1 form can result in fines or prosecution for employers as well as individual directors or company officers who are negligent to the offence.
Individual Consultation Requirements
Regardless of numbers, employers must consult fairly with each affected employee. This means:
- Explaining the reasons for the proposed redundancy
- Considering suggestions to avoid dismissal
- Allowing adequate time for the employee to respond
- Discussing alternative employment opportunities
A fair consultation process is not simply a tick-box exercise. Tribunals expect genuine consideration of alternatives and meaningful dialogue with employees. Therefore, it is important that employers follow a fair process and do not communicate their final decision to the affected employee until they have considered all employee representations and the consultation has concluded. If the process looks like a ‘done deal’ before consultation commences, then the employee may have a potential claim for unfair dismissal.
Selection Criteria
Where there are a number of employees in similar roles and the employer needs to consider a reduction in headcount, then these employees should be pooled and selection criteria used. The selection criteria must be objective and non-discriminatory. Common criteria include:
- Skills and qualifications
- Attendance records (as long as it does not include sickness related to a disability, or pregnancy, paternity or other parental leave)
- Performance and disciplinary records
- Length of service (as long as this is not discriminatory on the grounds of age)
- Versatility and flexibility (as long as this is not discriminatory towards women, who are generally the main caregivers to children)
Selection criteria must be carefully designed to avoid indirect discrimination against protected groups, such as those with disabilities or caring responsibilities. Subjective criteria such as attitude should be avoided, and the LIFO (last-in-first-out) approach is no longer recommended, given that it can potentially lead to discrimination claims by younger employees or women who tend to have shorter periods of employment.
Duty to Consider Suitable Alternative Employment
Before confirming redundancies, employers must take reasonable steps to find suitable alternative roles for affected employees. This might include:
- Vacancies in different departments or locations
- Roles at a different level with retraining
- Positions with associated companies
The duty extends throughout the notice period, and employers should offer trial periods for alternative roles where appropriate.
The Growing Impact of Technological Change
Amazon’s situation highlights how technological advancement and AI-driven automation represents a legitimate business reason for restructuring, but employers must still follow fair procedures.
UK employers implementing similar changes should:
- Be transparent about the reasons: Clearly explain how technology is changing business needs and why roles are no longer required in their current form.
- Consider redeployment and retraining: Where AI eliminates certain roles but creates others, employers should seriously consider upskilling existing employees rather than external recruitment.
- Document decision-making: Keep detailed records of business rationale, selection processes, and consultation meetings to defend against potential claims.
- Plan for timing: Allow sufficient time for proper consultation rather than rushing to implement changes.
Redundancy Payments and Notice
Employees with at least two years’ service are entitled to statutory redundancy pay, calculated based on age, length of service and weekly pay (currently up to £719 per week in England, Scotland and Wales and £749 for Northern Ireland – the rate is reviewed each April). Many employers offer enhanced packages, particularly for senior or long-serving employees.
Additionally, employees are entitled to their contractual notice period or statutory minimum notice, whichever is longer. During this period, employees (with at least two years’ service) should be allowed reasonable time off to look for alternative employment or arrange training.
Potential Claims and How to Avoid Them
Poorly managed redundancies can lead to various claims, including:
- Unfair dismissal (including automatic unfair dismissal)
- Failure to collectively consult
- Discrimination
- Wrongful dismissal
- Breach of contract
The key to avoiding claims is following proper procedures, having a clear business rationale, documenting everything thoroughly, and treating employees with respect and ensuring they are fully consulted with throughout the process.
Looking Ahead
As AI continues to evolve, workforce restructuring will become increasingly common across all sectors. Employers who approach these changes proactively, fairly and with proper legal guidance will be best positioned to navigate the transition successfully whilst minimising legal risk.
The scale of Amazon’s cuts serves as a reminder that even the largest organisations must balance business efficiency with their legal and moral obligations to employees. For UK businesses facing similar challenges, the message is clear: proper planning, fair procedures and expert legal advice are not optional extras but essential components of any redundancy process.
Get In Touch
Debbie Coyne is a Partner and head of our employment law team. Debbie has extensive experience advising employers on all aspects of employment law, including both contentious and non-contentious matters.
At Slater Heelis, we advise employers and employees on all aspects of redundancy, from planning large-scale restructuring programmes to defending individual claims. Whether you’re an employer navigating workforce changes or an employee facing redundancy, we can provide clear, practical guidance tailored to your situation.
If you’re concerned about redundancy procedures or need advice on managing technological change in your workforce, contact our employment law specialists today on 0330 111 3131 or via our online enquiry form.
