At a Glance
- Amazon is cutting 16,000 jobs across the company.
- The move follows a 14,000-person layoff in October.
- The company will close Amazon Go and Fresh stores and expand Whole Foods.
- Why it matters: The cuts signal a shift toward streamlined operations and a focus on same-day delivery, while the company indicates continued hiring in strategic areas.
Amazon announced today it will cut 16,000 jobs, the second large round of layoffs within three months, after a previous 14,000-person reduction in October. The decision comes amid a broader effort to reduce layers, increase ownership, and remove bureaucracy, according to senior VP Beth Galetti.
Background and Context
In a letter to employees, Galetti said the layoffs were meant to “reduce layers, increase ownership, and remove bureaucracy.” She explained that the second round of cuts was triggered because several teams had not finished their restructuring. The company has been in a period of single-digit growth for the past five quarters, as noted in its Q3 2025 filings, when it reported 1.57 million employees.
Timeline of Recent Events
| Date | Event |
|---|---|
| October | First round: 14,000 jobs cut |
| Today | Second round: 16,000 jobs cut |
| Next week | Amazon will publish its Q4 2025 results |
Leadership Statements
Galetti did not outright deny that more cuts could happen, but she emphasized that Amazon is not pursuing a pattern of large layoffs every few months. “Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan. But just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate,” she said in a blog post.
She also added that despite these job cuts, the company will continue to hire in strategic areas. This aligns with a memo from CEO Andy Jassy last year, which noted that AI would reduce the need for some current jobs while creating demand for others.
Operational Impact
Amazon is closing its physical Amazon Go and Amazon Fresh stores to concentrate on increasing capacity for same-day grocery delivery. Instead, the company plans to expand Whole Foods’ footprint and open 100 new stores over the next few years. This shift reflects a broader strategy to prioritize digital and delivery services over brick-and-mortar retail.
An earlier incident involved an erroneous meeting invite sent to many AWS employees. The invite referenced job cuts and a “Project Dawn” initiative, confusing workers. The invitation was canceled shortly after, according to Business Insider.
Future Plans and Hiring
While the layoffs are significant, Amazon has stated that it will continue to invest in strategic hiring. The company’s focus on AI and automation suggests that new roles will be created in areas such as machine learning, data science, and logistics optimization. The upcoming Q4 2025 results will likely provide further insight into the company’s financial health and hiring trajectory.
Key Takeaways
- Amazon is cutting 16,000 jobs, following a 14,000-person layoff in October.
- The cuts aim to reduce layers, increase ownership, and remove bureaucracy.
- Physical Amazon Go and Fresh stores will close; Whole Foods will expand with 100 new locations.
- Despite layoffs, Amazon plans to hire in strategic, AI-driven areas.
- The company’s Q4 2025 results are expected next week.
These moves underscore Amazon’s ongoing effort to streamline operations while positioning itself for future growth in delivery and technology services.
