Amazon announced Wednesday it will eliminate about 16,000 positions across the company, marking its second major round of layoffs in three months as it continues to streamline operations and invest heavily in artificial intelligence.
In a memo to employees, Beth Galetti, Amazon’s senior vice president of people experience and technology, said the cuts aim to simplify the organization by reducing management layers, increasing ownership, and cutting bureaucracy. “The reductions we are making today will impact approximately 16,000 roles across Amazon, and we’re again working hard to support everyone whose role is impacted,” she wrote.
Most affected U.S.-based employees will receive 90 days to seek other roles within the company. Those who cannot find new positions will be offered severance pay, job placement assistance, and continued health benefits. Galetti said Amazon will keep hiring in strategic areas essential to its long-term growth, adding that the company does not plan to make broad layoffs a routine practice, but teams will continue adjusting staffing as business needs evolve. CEO Andy Jassy has said efficiency gains from generative AI are likely to reduce corporate headcount in coming years, following Amazon’s rapid hiring during the pandemic.
The move follows October’s layoffs of 14,000 corporate workers, bringing total cuts since then to roughly 30,000 — about 10% of Amazon’s corporate and technology workforce. Some reductions will impact divisions such as Prime Video and Amazon MGM Studios.
Amazon, which employs about 1.55 million people worldwide, has cut more than 27,000 jobs since 2022 and continues to reshape its business, including closing its Amazon Fresh grocery and cashierless Go stores. The company is redirecting resources toward AI and large-scale data center expansion, with capital spending projected to reach $125 billion in 2026.
The announcement comes amid widespread corporate layoffs as companies pursue efficiency and automation in a slower hiring environment. Firms including Pinterest, Microsoft, Meta, Target, and UPS have recently announced workforce reductions as they pivot toward higher-margin and AI-driven operations.
Editorial credit: Jidev jidu photography / Shutterstock.com
