With Amazon facing continued pressure from growth that has steadily slowed, along with an increasingly high impact of AI-powered automation, the company is reportedly preparing to cut up to 16,000 corporate jobs starting January 27. Unlike previous rounds that were largely concentrated in the US, this phase is expected to impact international offices, with engineering, operations, and support teams from AWS and Prime Video likely to be affected the most, reports Reuters.
This round of layoffs follows a series of job cuts that the e-commerce giant has carried out since late 2025. The first phase, concluded in October 2025, saw around 14,000 corporate employees lose their jobs, mostly in the United States. And now, with the new cuts, the total number of positions eliminated could reach 30,000 (~ 10% of its corporate workforce) by mid-2026, making it one of the biggest downsizing efforts in Amazon’s history. However, such large-scale layoffs are not new for the company. Amazon had earlier cut more than 27,000 jobs across multiple rounds in 2022, and in 2023, it was estimated to have eliminated over 18,000 roles as it restructured its workforce amid slowing growth and rising costs.
These layoffs are reportedly aimed not only at trimming costs but also at reorganizing teams to improve skills and reduce layers of management, particularly in functions that are increasingly supported by automation and artificial intelligence. The move becomes crucial as Amazon CEO Andy Jassy has repeatedly been vocal about reducing internal bureaucracy and accelerating the adoption of generative AI across the company’s operations.
For affected employees, the upcoming layoffs are expected to be a challenging period. In past rounds, the company has provided severance packages that included several months of pay, continuation of benefits, and access to internal job openings. Additional support, like outplacement services, has also been offered to help employees transition to new opportunities. While the specifics for this latest round have not been officially confirmed, similar measures may be implemented. The report further highlights that social media platforms and professional networks, particularly LinkedIn, have seen active discussions among Amazon staff about the potential layoffs, reflecting growing anxiety among employees. But the firm has not yet officially confirmed the exact date or final number of affected employees, nor the specific teams that will face layoffs.
The latest restructuring also reflects a wider trend across the technology industry, where companies are adjusting their workforce plans in response to faster adoption of AI, automation, and changing business conditions. Technology giants like Microsoft, Meta, and Google have also reduced staff in recent years, citing the need to cut costs and focus more sharply on core products and long-term growth priorities.
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