Amazon plans to cut 16,000 jobs in its latest round of layoffs. Learn what happened, why Amazon is downsizing, how AI is impacting jobs, and what employees can expect next.
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What Is Happening at Amazon?
Amazon has announced it will cut 16,000 jobs in its latest round of layoffs, marking another major workforce reduction at the tech and e-commerce giant. The announcement was made in a company blog post by Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology.
According to the post, most U.S.-based employees affected by the cuts will receive 90 days to search for new roles internally. Workers who are unable to secure another position—or choose not to pursue one—will be offered severance pay, outplacement support, and continued health insurance benefits.
When and Where Are the Layoffs Taking Place?
The layoffs were announced this week and primarily affect Amazon’s corporate workforce, particularly in the United States. This move follows an earlier round of layoffs in October, when Amazon cut 14,000 jobs. Combined, the two rounds bring Amazon’s total job cuts to 30,000 employees, roughly 10% of its corporate workforce, aligning with earlier reports from Reuters.
Why Is Amazon Cutting Jobs?
Amazon says the layoffs are part of a broader effort to streamline operations and improve efficiency. Galetti explained that the company is working to “strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy.”
A major driver behind this restructuring is artificial intelligence. Amazon is aggressively adopting generative AI and AI-powered agents, which are changing how work is performed across the company. As automation expands, fewer employees are needed for certain roles, while demand grows for workers with AI, cloud, and advanced technical skills.
How Does AI Factor Into Amazon’s Decision?
Amazon CEO Andy Jassy has been open about AI’s impact on jobs. In a message to employees last year, Jassy said that while AI will create new roles, it will also eliminate others.
“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy wrote, adding that AI efficiency gains are expected to reduce Amazon’s total corporate workforce over time.
Galetti echoed this sentiment, calling AI “the most transformative technology since the Internet” and emphasizing the need for a leaner organizational structure to move faster for customers and the business.
What’s Next for Amazon and Its Employees?
The layoffs come as Amazon continues to invest heavily in artificial intelligence infrastructure. Last year, the company announced plans to spend $125 billion on data centers and capital expenditures, with spending expected to rise again this year.
For employees, the message is clear: adaptability is critical. Amazon is prioritizing efficiency, AI integration, and high-impact roles, signaling a long-term shift in how work is structured.
Final Takeaway
Amazon’s decision to cut 16,000 jobs reflects a broader trend across the tech industry, where companies are balancing cost control with massive AI investment. While painful in the short term, Amazon sees the layoffs as a necessary step to remain competitive in an AI-driven future—one where speed, ownership, and automation define success.