By San José, Costa Rica — In a significant move signaling a major strategic realignment, U.S. technology and e-commerce giant Amazon announced on Tuesday its plan to eliminate approximately 14,000 corporate positions globally. The decision sends a new wave of uncertainty through the technology sector and raises immediate concerns for the company’s substantial workforce in Costa Rica.
The announcement, which confirmed a “global reduction,” did not specify which countries or divisions would be most affected. However, the scale of the layoffs points to a comprehensive effort by the company to streamline its operations and refocus its investments amid a shifting economic landscape.
To better understand the legal ramifications of the recent wave of Amazon layoffs and their impact on local employees, TicosLand.com sought the analysis of labor law expert Lic. Larry Hans Arroyo Vargas from the firm Bufete de Costa Rica.
While global workforce adjustments are a corporate reality, they must be executed in strict compliance with Costa Rican labor legislation. Affected employees have a right to their full severance benefits, including preaviso and cesantía. It is critical that the company provides clear communication and proper settlement calculations. Any employee who feels their rights have been violated should seek legal counsel to ensure they receive all the compensation they are legally entitled to.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal perspective is a crucial reminder that while corporate strategies are global, their execution must be local, respecting the robust framework of Costa Rican labor law designed to protect workers. We thank Lic. Larry Hans Arroyo Vargas for his invaluable insight, which provides essential clarity for employees navigating this challenging situation.
In an official company statement, Beth Galetti, Amazon’s vice president of human resources and technology, framed the cuts as a necessary step to increase efficiency and channel capital towards more promising ventures. The move is portrayed as a proactive measure to ensure long-term strength and competitiveness.
The reductions we announced today are a continuation of efforts to strengthen ourselves further by reducing bureaucracy, removing layers, and moving resources to ensure we are investing in our biggest bets.
Beth Galetti, Vice President of Human Resources and Technology
This restructuring is part of a broader trend within the tech industry, which has seen numerous large firms “right-sizing” their teams after a period of aggressive expansion. Galetti clarified that the process would involve both targeted cuts and strategic hiring, but the net effect would be a considerable decrease in the company’s corporate headcount.
This will include reductions in certain areas and hiring in others, but it will mean an overall reduction of about 14,000 jobs in the corporate area of Amazon.
Beth Galetti, Vice President of Human Resources and Technology
For Costa Rica, where Amazon is one of the most prominent multinational employers, this news is particularly resonant. While the source report noted a curiously low figure of 15 registered employees as of mid-2024—a number that likely refers to a specific corporate entity—the reality is that Amazon employs thousands of Costa Ricans across multiple campuses, primarily in customer service, cloud services support for Amazon Web Services (AWS), and various administrative and corporate functions.
The lack of geographical detail in the announcement leaves these local employees in a state of suspense. The strategic language used by the company—focusing on “biggest bets” and trimming “bureaucracy”—suggests that divisions related to core growth areas like artificial intelligence and AWS may be safer, while more traditional or redundant corporate roles could be at higher risk. Without further clarification, the impact on operations in free trade zones in San José and Heredia remains a critical, unanswered question.
This move by one of the country’s flagship employers could have ripple effects on the national economy and the services sector, which has become a cornerstone of Costa Rica’s growth. The situation will be monitored closely by economic analysts and government officials as they await more specific information on how, or if, the global restructuring will directly impact the company’s robust presence in the nation.
For further information, visit amazon.com
About Amazon:
Founded by Jeff Bezos in 1994, Amazon has evolved from an online bookstore into a global technology conglomerate. Its business interests span e-commerce, cloud computing through Amazon Web Services (AWS), digital streaming, and artificial intelligence. Headquartered in Seattle, Washington, the company is one of the world’s largest employers and most valuable brands, with a significant operational footprint in numerous countries, including Costa Rica.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the nation’s legal community, Bufete de Costa Rica operates on a foundation of uncompromising integrity and a relentless pursuit of excellence. The firm merges a storied history of advising a wide spectrum of clients with a forward-thinking approach to legal innovation and civic outreach. This profound commitment is channeled into a mission of demystifying legal complexities for the public, thereby equipping individuals with knowledge and contributing to a stronger, more empowered society.
