Mass Layoffs: Amazon announces more job cuts as AI investments continue to grow

Amazon has announced another round of layoffs in its Selling Partner Services division as the company continues restructuring operations while sharply increasing investments in artificial intelligence and automation.

Post Published By: Ayushi Bisht
Updated : 14 May 2026, 9:48 PM IST

New Delhi: Amazon has announced another phase of layoffs, this time affecting employees in its Selling Partner Services division. The move is part of the company’s broader restructuring strategy as it continues streamlining operations while increasing investments in artificial intelligence and automation technologies.

The Selling Partner Services team plays a major role in supporting third-party sellers on Amazon’s marketplace. Employees in the division assist businesses with onboarding, product deliveries, account management and operational support.

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While Amazon described the latest cuts as affecting only a “small number” of employees, the announcement adds to a growing list of workforce reductions carried out by the company over recent months.

Thousands of Jobs Already Eliminated

Over the past six months, Amazon has reportedly eliminated nearly 30,000 positions across multiple divisions. Previous layoffs impacted teams in retail, robotics and several corporate units as the company reviewed operational costs and organisational structures.

The latest move reflects Amazon’s continued efforts to simplify internal processes after rapid expansion during the pandemic years, when online shopping demand surged globally.

The company said affected employees would receive severance pay, temporary healthcare benefits and assistance in finding new employment opportunities. Amazon acknowledged the difficulty of the decisions but maintained that the restructuring is aimed at improving long-term efficiency.

AI Investments Become Top Priority

Even as workforce reductions continue, Amazon is significantly expanding investments in artificial intelligence. CEO Andy Jassy has repeatedly emphasised that AI will play a central role in transforming customer experiences, logistics systems, cloud computing and advertising operations.

The company is investing heavily in AI infrastructure, including large-scale data centres and advanced automation systems. According to Amazon, these technologies are expected to improve productivity and reduce operational complexity across its businesses.

Jassy has also indicated that the growing use of AI could eventually reduce the need for certain roles currently handled by human employees.

Mass Layoffs: Amazon announces 16,000 job cuts amid ‘rising competition over AI’; Full story here

Shift Towards Automation and Efficiency

Industry analysts view Amazon’s strategy as part of a larger trend among global technology companies that are balancing cost-cutting measures with aggressive AI expansion.

As businesses increasingly adopt automation tools, companies are reassessing workforce requirements while redirecting spending toward emerging technologies expected to shape the future of digital commerce and cloud services.

Amazon’s latest layoffs highlight the growing transition taking place across the technology sector, where AI development is becoming a major focus even as companies continue reducing headcount in traditional operational roles.

Location :  New Delhi

Published :  14 May 2026, 9:48 PM IST