Amazon on Wednesday said it will reduce its corporate workforce by approximately 16,000 jobs, marking the company’s second major round of layoffs since October. The cuts are part of a broader effort to streamline operations, reduce management layers, and remove bureaucracy while accelerating investments in artificial intelligence.
The company’s senior vice president of people experience and technology, Beth Galetti, said in a blog post that the layoffs aim to strengthen ownership, speed, and capacity across teams. Employees affected in the U.S. will generally have 90 days to apply for other internal positions, while those unable or unwilling to transition will receive severance, outplacement support, and applicable benefits.
“This is not the start of a new rhythm of layoffs,” Galetti said, adding that every team will continue to evaluate its structure and adjust as needed.
Continued Workforce Adjustments
The new reduction follows 14,000 corporate layoffs in October and comes as Amazon seeks additional efficiency gains across its roughly 350,000 corporate and tech employees. Combined with prior cuts, the company has eliminated about 30,000 corporate roles since last year, roughly 10% of its corporate and tech workforce. Overall, Amazon employs about 1.58 million people, the majority in warehouses and logistics operations.
CEO Andy Jassy has emphasized transforming Amazon’s corporate culture to operate like a startup, reducing bureaucracy, and accelerating decision-making. This includes internal initiatives such as a “no bureaucracy email alias” to identify inefficiencies and cut management layers.
Amazon has also been cutting costs across its business to increase AI investments and expand data center infrastructure. The company recently closed its Fresh and Go grocery chains after years of experimentation. Capital expenditures are forecast to reach $125 billion in 2026, the highest among major U.S. technology companies.
Jassy previously indicated that efficiency gains from AI would likely reduce the need for some corporate roles while creating demand for new skill sets. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” he said last June.
Strategic Focus
Despite workforce reductions, Amazon said it continues to hire in strategic areas critical to long-term growth, including AI, cloud computing, and other high-priority initiatives. Galetti highlighted that many teams are still in early stages of building their businesses, presenting significant opportunities for the company and its employees.
Amazon’s latest cuts also reflect a wider trend in the industry as companies reshape their workforces around artificial intelligence. Pinterest recently announced plans to cut around 780 jobs, or roughly 15% of its staff, to focus on AI-driven products and strategy. In Europe, banks are planning deep workforce reductions, with more than 200,000 jobs potentially eliminated by 2030 as AI transforms operations and accelerates branch closures, particularly in back-office, risk, and compliance roles.
The company’s approach reflects a dual strategy of trimming operational complexity while investing in technology-driven growth to remain competitive in e-commerce, cloud services, and AI innovation.
