Amazon’s retail division, one of the company’s largest business units, will not increase its hiring budget this year, according to an internal communication reviewed by Business Insider. Instead, the unit will maintain a "flat headcount opex" — a term referring to the combined cost of salaries and stock-based compensation — in line with its 2024 figures.

This development was conveyed earlier in the year by a senior finance leader within Amazon’s retail team, the news organisation reported. The email stressed that any requests for additional hiring funds will be “scrutinised” and must be supported with “strong supporting reasons.” Rather than tracking the number of new hires, Amazon is now shifting its focus to managing hiring within pre-set operating expense limits.

The policy applies only to corporate staff within the retail business and does not impact workers in Amazon's warehouses or those in the Amazon Web Services (AWS) division. Amazon’s retail arm includes key operations such as its core e-commerce platform, Fresh grocery service, and logistics network.

Efficiency Over Expansion

While the decision may seem like a hiring freeze, Amazon clarified that it doesn’t equate to a complete halt in recruitment. “Each of Amazon's many businesses has its own approach to hiring based on its individual needs,” said Amazon spokesperson Zoe Hoffman in an email to Business Insider. “However, across the company, we've historically considered both the number of people we need to hire and the associated costs — that is, Operating Expenses or OpEx — of those hiring decisions.” She added that maintaining the hiring budget is “the responsible way” to grow a company of Amazon’s scale.

The email noted that Amazon retail CEO Doug Herrington has been closely monitoring operating expenses over the past two years. To support better financial tracking, the team has rolled out new tools that allow leaders to analyse headcount by level, skills, and tenure.

Amazon’s workforce, which surged during the pandemic to meet heightened demand, has now stabilised. After doubling its headcount from 2019 to 2021, reaching 1.6 million, the company trimmed its workforce to 1.55 million in 2024. Since late 2022, it has laid off more than 27,000 employees.