By THE ASSOCIATED PRESS
Updated 4:45 AM PST, January 28, 2026
Amazon is implementing approximately 16,000 corporate layoffs in its second wave of significant job cuts within three months.
The tech behemoth has expressed its intention to leverage generative artificial intelligence to replace some corporate roles while also downsizing the workforce that expanded during the pandemic.
Beth Galetti, Amazon’s senior vice president, stated in a blog post on Wednesday that the company is “streamlining operations, enhancing responsibility, and eliminating bureaucracy.”
The company has not disclosed which business divisions will be affected by these layoffs or the locations of the job cuts.
The latest job reductions follow an announcement in October where Amazon confirmed the layoff of 14,000 employees. While some departments completed their “organizational adjustments” back in October, others are only finishing up now, informed Galetti.
U.S. employees impacted will be given 90 days to seek new roles within the company. Those who do not secure a position or choose not to take one will be provided with severance pay, outplacement services, and continued health insurance, she noted.
“Though we are making these transitions, we will continue to hire and invest in strategic areas vital to our future,” said Galetti.
CEO Andy Jassy, who has aggressively pursued cost-cutting measures since taking over from founder Jeff Bezos in 2021, mentioned in June that he expected generative AI to contribute to a decline in Amazon’s corporate workforce over the next few years.
This latest round of layoffs marks Amazon’s most significant workforce reduction since 2023, when 27,000 jobs were cut.
Amid the landscape, Amazon, along with other major tech and retail companies, has reduced thousands of jobs to align spending with post-pandemic realities. The company’s workforce had doubled as millions of individuals turned to online shopping during the pandemic.
Notably, these job cuts come at a time when Amazon is financially secure.
In the most recent quarter, the company’s profits surged nearly 40% to around $21 billion, while revenue climbed to over $180 billion.
Following the previous layoff announcements, Jassy clarified that these job cuts were not solely driven by financial concerns or advancements in AI technology.
“It’s about culture,” he explained in October. “Rapid growth creates a larger organizational structure with more layers and personnel than necessary.”
Hiring in the U.S. has slowed down, with only 50,000 jobs added in December; this figure was only marginally higher than the revised November number of 56,000.
Labor statistics indicate a hesitance among businesses to expand their workforce, despite a resurgence in economic growth. Many companies that aggressively hired during and post-pandemic are now reassessing their staffing needs. Others are cautious due to uncertainty surrounding tariff policy changes from President Trump, high inflation rates, and the potential impact of artificial intelligence on job markets.
While some economists describe the U.S. labor environment as a “no hire-no fire” scenario, several businesses have still moved forward with layoffs, even this week.
This past Tuesday, UPS announced plans to cut up to 30,000 operational jobs via attrition and buyouts due to a reduction in shipments from its largest client, Amazon. This follows a significant reduction of 34,000 jobs at UPS in October and the closure of daily operations in 93 leased and owned facilities last year.
Additionally, on the same day, Pinterest revealed it would lay off nearly 15% of its workforce as part of a broader strategic shift focused on artificial intelligence.
Amazon Inc., headquartered in Seattle, saw a slight rise in its stock prices before the market opened on Wednesday.
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