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Amazon Slashes 16,000 Corporate Jobs in Second Major Cut This Year
Amazon announced Wednesday it will eliminate approximately 16,000 corporate positions, marking the tech giant’s second round of mass layoffs in just three months. This reduction follows a previous cut of 14,000 jobs in October, continuing CEO Andy Jassy’s aggressive cost-cutting measures since he took the helm from founder Jeff Bezos in 2021.
Beth Galetti, Amazon’s senior vice president, explained the decision in a company blog post, saying the e-commerce giant has been “reducing layers, increasing ownership, and removing bureaucracy.” While Amazon did not specify which business units would be affected or where the cuts would occur, the company indicated it would continue to hire and invest in “strategic areas and functions” deemed critical to its future.
U.S.-based employees affected by the cuts will have 90 days to find another position within the company. Those unable to secure a new role or uninterested in doing so will receive severance packages that include pay, outplacement services, and health insurance benefits.
The layoffs represent Amazon’s largest workforce reduction since 2023, when the company eliminated 27,000 jobs. These cuts reflect a broader trend among tech companies adjusting their workforces after pandemic-era expansion. During COVID-19, Amazon’s workforce doubled as online shopping surged, but the company, like many of its peers, is now bringing spending in line with post-pandemic realities.
Notably, Amazon has indicated its intention to leverage generative artificial intelligence as a replacement for some corporate roles. In June, Jassy predicted that AI would likely reduce Amazon’s corporate workforce over the next several years. This aligns with economic research suggesting that higher-paying jobs in computer work and engineering are among the most susceptible to AI transformation.
Recent research from the Brookings Institution offers context to these technological shifts. While tech workers facing AI disruption typically have the education, skills, and financial resources to transition to new roles, millions of other workers lack such advantages. Administrative and clerical workers—86% of whom are women, often older and concentrated in smaller cities with fewer career options—face particular vulnerability to AI-driven job displacement.
Amazon’s cuts come amid a broader hiring slowdown across the United States. December data showed the country added just 50,000 jobs, virtually unchanged from November’s downwardly revised figure of 56,000. This stagnation suggests businesses remain reluctant to expand their workforces despite economic growth.
Several factors contribute to this hesitancy, including previous post-pandemic over-hiring, uncertainty about President Trump’s shifting tariff policies, persistent inflation, and the increasing adoption of artificial intelligence, which could significantly transform workforce needs.
Other major companies have recently announced similar workforce reductions. UPS revealed plans to cut up to 30,000 operational positions through attrition and buyouts this year, partly due to reduced shipments from Amazon, previously its largest customer. Pinterest also announced layoffs affecting less than 15% of its staff as it restructures to invest more heavily in artificial intelligence.
Despite these cuts, Amazon remains in strong financial position. In its most recent quarter, the company reported a nearly 40% jump in profit to approximately $21 billion, with revenue soaring past $180 billion.
Following the announcement, Jassy emphasized that the cuts were more about streamlining the company’s culture than addressing financial concerns or implementing AI. “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,” he explained in October.
Amazon’s shares fell slightly by just over 1% in late afternoon trading following the announcement.
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9 Comments
It’s unfortunate to see so many Amazon employees lose their jobs, but the tech industry is going through a correction after a period of rapid growth. The company is likely trying to become leaner and more efficient.
The cuts are a reminder of the volatility in the tech industry. It will be interesting to see how Amazon’s workforce adjustments affect its competitiveness and ability to innovate going forward.
You make a good point. Tech companies need to carefully balance cost-cutting with maintaining a skilled workforce to drive future growth.
The latest round of layoffs at Amazon is a tough move, but necessary in these economic times. The company is streamlining operations and focusing on core strengths to position itself for the future.
16,000 job losses is a significant number, but Amazon is likely doing what it needs to in order to weather the current economic climate. The company will need to focus on its core strengths to stay competitive.
Agreed. Amazon is a major employer, so these layoffs will have a real impact on the affected workers and their families. Hopefully the company can provide good severance and transition support.
The scale of these layoffs shows how quickly the fortunes of tech giants can change. Amazon will need to make tough decisions to streamline its operations and become more agile.
While the layoffs are significant, it’s not surprising given the broader slowdown in the tech sector. Amazon needs to ensure it remains competitive and agile in the long run.
I wonder how the layoffs will impact Amazon’s operations and ability to deliver services. Hopefully the company can retain critical talent and continue investing in strategic areas.