In a larger restructure, Amazon eliminates 16,000 workers worldwide

Amazon to Cut About 16,000 Corporate Jobs in Second Round of Layoffs in Three Months

Amazon said on Wednesday it will cut about 16,000 corporate jobs, marking its second round of mass layoffs in three months as the ecommerce giant continues to streamline operations and increase its use of generative artificial intelligence.

The company did not specify which business units or locations would be affected. The latest reductions follow job cuts announced in October, when Amazon said it would lay off about 14,000 workers.

In a blog post, Beth Galetti, Amazon’s senior vice president of people experience and technology, said the company has been “reducing layers, increasing ownership, and removing bureaucracy” as part of broader organisational changes.

Some business units completed their restructuring in October, while others finished only recently, Galetti said. U.S.-based employees impacted by the cuts will be given 90 days to seek new roles internally. Those who do not secure a new position, or choose not to pursue one, will be offered severance pay, outplacement support and continued health insurance benefits.

“While we’re making these changes, we’ll also continue hiring and investing in strategic areas and functions that are critical to our future,” Galetti said.

Chief Executive Andy Jassy, who has focused on cost-cutting since taking over from founder Jeff Bezos in 2021, said in June that generative AI is expected to reduce Amazon’s corporate workforce in the coming years. The layoffs announced on Wednesday are the company’s largest since 2023, when Amazon eliminated about 27,000 roles.

The job cuts come despite Amazon’s strong financial performance. In its most recent quarter, the company reported a nearly 40% jump in profit to around $21 billion, while revenue rose to more than $180 billion.

Jassy has previously said the layoffs were not driven by financial pressures or artificial intelligence. “It’s culture,” he said in October, pointing to the rapid expansion of the company during the pandemic years, which led to additional management layers and organisational complexity.

Amazon’s workforce roughly doubled during the COVID-19 pandemic as online shopping surged. Like many large technology and retail companies, it has since been trimming headcount to align costs with slower growth.

The announcement comes amid signs of a cooling U.S. labour market. In December, the U.S. economy added about 50,000 jobs, little changed from November, reflecting growing caution among employers even as economic growth continues.

Several companies have announced job cuts this week. On Tuesday, UPS said it plans to eliminate up to 30,000 operational roles through attrition and buyouts as it reduces shipments from its largest customer, Amazon. Pinterest also said it would lay off fewer than 15% of its workforce as it restructures and increases investment in artificial intelligence.

Shares of Seattle-based Amazon rose slightly in premarket trading on Wednesday.