According to the report, several employees have already been told they've been laid off and those layoffs are expected to be completed in the next few weeks.
Still, some Seattle-based employees describe an environment of belt-tightening.
Meanwhile, the online retail giant said it is working to offer affected staff new roles and said it expects "small reductions in a couple of places and aggressive hiring in many others".
In a statement, Amazon.com Inc. says it is still hiring aggressively in some areas and will consider those affected for other roles.
According to the people familiar with the matter, the layoffs are mainly at Amazon's headquarter in Seattle, and primarily focused on customer retail businesses. In Seattle alone, Amazon has 4,000 job listings. The company's global workforce also numbered 566,000 in the same report, a 66 percent increase from the same time past year.
Amazon is still furiously hiring on other fronts. There were 9,000 open positions available in June.
Its full-time and part-time headcount surged 66 percent in the fourth quarter to 566,000 from a year earlier. Amazon is also making manufacturers and suppliers do more work - such as coordinating marketing and promotions - things that Amazon used to handle internally, he said. It received 238 bids from municipalities for its second headquarters and is now in the evaluation process, trying to select the best location.
This means many of Amazon's corporate jobs are going to areas of fast-growing profit, like cloud-computing division Amazon Web Services, or areas where it sees potential, like voice-controlled computing. Last year, the company announced plans to hire 50,000 warehouse workers, staging a one-day blitz dubbed "Amazon jobs day". Now it is costing people their jobs.
"Amazon makes rare round of layoffs at Seattle headquarters", USA Today, February 12, 2018. Its Amazon Go store concept - which recently opened in Seattle - involves no checkouts with all goods bought via an app.