At a Glance
- Amazon will cut 16,000 corporate positions in its second round of layoffs in three months.
- The company cites generative artificial intelligence as a key driver for reducing workforce layers.
- Employees receive 90 days to seek internal roles and will be offered severance, outplacement services and health benefits.
- Why it matters: The move marks Amazon’s biggest workforce reduction since 2023, reflecting broader tech industry shifts toward AI-driven efficiency.
Amazon announced a second wave of layoffs, targeting 16,000 corporate roles across its U.S. operations. The cuts come three months after a prior round that saw 14,000 employees dismissed in October. The company says it plans to use generative artificial intelligence to replace many of the positions being eliminated.
Scale of the Cuts
Amazon’s latest reductions follow its most recent quarterly results, in which profits jumped nearly 40% to about $21 billion and revenue surpassed $180 billion.
| Date | Event | Workforce Impact |
|---|---|---|
| October | First round of layoffs | 14,000 workers |
| March | Second round of layoffs | 16,000 workers |
| 2023 | Largest cut | 27,000 workers |
The layoffs are Amazon’s biggest since 2023, when the company cut 27,000 jobs. The new round is part of a broader strategy to trim layers and increase ownership within the organization.
Leadership and Strategy
Amazon‘s senior vice president, Beth Galetti, outlined the company’s approach in a blog post on Wednesday:
> “We are reducing layers, increasing ownership, and removing bureaucracy,” she wrote.
She added that U.S. staff would receive 90 days to find new roles internally. Those who are unsuccessful or do not wish to transition will receive severance pay, outplacement services, and health insurance benefits.
> “While we’re making these changes, we’ll also continue hiring and investing in strategic areas and functions that are critical to our future,” Galetti said.
CEO Andy Jassy, who has aggressively cut costs since taking over in 2021, had previously noted in June that generative AI would reduce Amazon’s corporate workforce over the next few years.
> “It’s culture,” Jassy said in October. “And if you grow as fast as we did for several years, the size of businesses, the number of people, the number of locations, the types of businesses you’re in, you end up with a lot more people than what you had before, and you end up with a lot more layers.”
Employee Support
Employees affected by the layoffs will have access to:
- Severance pay
- Outplacement services
- Health insurance benefits for a defined period
- A 90-day window to explore internal opportunities
The company emphasized that the cuts are not driven by financial distress. Instead, they aim to streamline operations and focus on core strategic priorities.
Financial Context
Amazon’s most recent quarterly performance demonstrates strong profitability and revenue growth:
- Profits rose 40% to $21 billion.
- Revenue exceeded $180 billion.
These figures suggest that the layoffs are not a response to financial weakness but rather a strategic realignment in a post-pandemic environment where the workforce had doubled.
Industry Trends
Amazon’s layoffs are part of a broader trend among large tech and retail firms. Other companies have announced significant cuts:
| Company | Planned Cuts | Context |
|---|---|---|
| UPS | Up to 30,000 operational jobs | Attrition and buyouts; reduced shipments from Amazon |
| UPS | 34,000 cuts in October | Closure of 93 daily operations |
| Under 15% of workforce | Restructuring and shift toward AI |
The labor market remains cautious. Hiring has stagnated in the U.S., with only 50,000 jobs added in December, a slight rise from the revised figure of 56,000 in November. Economic uncertainty, including tariff policy shifts, inflation, and the rise of AI, has made many businesses hesitant to add staff.
Career coach Jamie Johnson of The University of Phoenix advises workers to “future proof” their roles in the age of AI, highlighting the importance of adaptability.
Key Takeaways
- Amazon is cutting 16,000 corporate jobs, the largest round since 2023.
- The company cites generative AI and a need to reduce bureaucracy as primary reasons.
- Affected employees receive 90 days to find internal roles and will be offered severance and benefits.
- Amazon’s strong financial performance suggests the layoffs are strategic, not financially driven.
- Similar cuts across the tech sector indicate a shift toward AI and leaner operations.
Shares of Amazon Inc., based in Seattle, rose slightly before the opening bell on Wednesday, reflecting investor reactions to the announcement.
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