Amazon is slashing up to 16,000 corporate jobs amid rising AI competition. What does this mean for employees and the future of work at one of the world’s largest companies? Find out how automation is reshaping Amazon’s corporate world.
Amazon announces 16,000 job cuts
New Delhi: Amazon has announced plans to lay off up to 16,000 corporate employees as the e-commerce and tech giant faces “rising competition over AI.” The move affects less than 5% of Amazon’s overall workforce but is part of CEO Andy Jassy’s ongoing effort to streamline management and reduce bureaucracy.
Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, said in a company blog post on Wednesday that U.S.-based employees affected by the layoffs will have 90 days to explore internal job opportunities. In addition, Amazon will provide severance packages and transition support to help employees navigate the change.
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Addressing potential employee concerns, Galetti clarified that this is not the start of a recurring cycle of layoffs. “Some of you might ask if this is the beginning of a new rhythm where we announce broad reductions every few months. That’s not our plan,” she said. Instead, the company aims to strengthen its organization by reducing layers, increasing individual ownership, and eliminating bureaucratic hurdles.
This latest round of job cuts follows a previous layoff in October 2025, when 14,000 employees were let go. Jassy has repeatedly emphasized the need to cut management layers and make operations more agile, warning that automation driven by AI technologies will reduce certain job roles over time.
Amazon employs approximately 1.57 million people worldwide, with the vast majority working in its fulfilment centers and warehouses. The corporate workforce, which will bear the brunt of the layoffs, numbers about 350,000 employees. These cuts underscore the company’s ongoing pivot toward efficiency and technology-driven operations.
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Amazon has increasingly focused on incorporating artificial intelligence across its business, from logistics and supply chain management to customer service. The layoffs are partly a reflection of this technological shift, as AI-driven automation continues to reshape corporate job structures.
While the company moves to streamline its corporate operations, it emphasizes that these layoffs are strategic rather than indicative of recurring reductions, signalling Amazon’s intent to stay competitive in an evolving tech landscape.
