E-commerce behemoth Amazon is initiating a second major wave of workforce reductions, eliminating approximately 16,000 corporate positions globally. This latest downsizing follows a similar 14,000-role reduction implemented late last year, underscoring a profound and ongoing restructuring effort within the Seattle-based conglomerate. The cuts are reportedly impacting key segments, including Amazon Web Services (AWS), Prime Video, and human resources functions, according to initial reports.
In a communication reviewed by this publication, Amazon confirmed that the reductions are focused exclusively on corporate-level employees. Affected staff in the United States have been afforded a 90-day window to secure alternative roles internally. For those unable to transition, the company pledged comprehensive support packages, including severance, outplacement services, and continuation of health benefits, as stated by Beth Galetti, Senior Vice President of People Experience and Technology.
This workforce reduction occurs against a backdrop of strategic corporate divestment, notably the announced closure of over 70 physical Amazon Go and Amazon Fresh grocery locations, with some sites earmarked for conversion into Whole Foods Market stores—an acquisition integral to Amazon’s 2017 retail expansion.
The dual actions—physical store closures and corporate layoffs—are explicitly tied to CEO Andy Jassy’s stated commitment to leveraging artificial intelligence for operational efficiency. Jassy previously indicated that extensive integration of generative AI would inevitably lead to workforce consolidation to realize anticipated efficiency dividends.
Globally, Amazon’s move reflects a broader trend gripping the technology sector. Peer companies, including Pinterest and Autodesk, have recently announced significant headcount reductions, directly attributing resource reallocation towards AI development and deployment. Data from Layoffs.fyi indicates that over 123,000 tech jobs were eliminated across the sector in the preceding year, signaling a decisive pivot in capital and labor allocation.
The market reaction was muted; Amazon's stock saw a modest intraday dip of 0.7%, though year-to-date performance remains positive at 7%. However, the broader economic implications extend beyond tech, evidenced by UPS's simultaneous announcement of 30,000 job cuts, partially linked to reduced delivery volumes for Amazon, illustrating complex supply chain adjustments.
This sustained campaign of efficiency measures, driven by technological substitution, redefines the labor landscape for large-scale digital enterprises. The confluence of retail footprint contraction and corporate optimization suggests a sustained recalibration of Amazon’s operational model toward leaner, AI-augmented structures, impacting thousands of white-collar careers worldwide.