Edith HejbergThe news first reached employees via an internal email Tuesday night, hours before Amazon’s official blog post
Amazon is slashing another 16,000 jobs, marking its second major round of layoffs in just three months.
According to CNN The move is part of a broader effort to streamline operations as the tech giant intensifies its focus on artificial intelligence and organizational speed.
Trimming bureaucracy to move faster
In a blog post, Beth Galetti, Amazon’s senior VP of people, said the company is cutting “layers” and “bureaucracy” to improve decision-making.
The goal is to empower teams and speed up how Amazon responds to emerging technologies and customer needs.
October layoffs laid the groundwork
These latest cuts follow a similar move in October, when Amazon eliminated 14,000 corporate positions.
That restructuring reflected CEO Andy Jassy’s push to run the company more like a fast-moving startup, agile, lean, and future-focused.
Nearly 10% of corporate staff affected
With over 350,000 corporate employees,
Amazon’s two recent layoff rounds affect about 9% of its white-collar workforce. The company is the second-largest private employer in the U.S., just behind Walmart.
This isn’t a “new rhythm,” exec says
Galetti reassured staff that frequent layoffs aren’t becoming the norm. She said the company is assessing “ownership, speed, and capacity to invent” and will make further staffing decisions based on those priorities, not as a routine cost-cutting measure.
Strategic hiring still on the table
Despite the job losses, Amazon plans to hire in key growth areas. Teams working on AI, cloud computing, and other long-term initiatives remain a priority as the company reallocates resources to shape its future.
Battling tech giants for AI dominance
Amazon is locked in a fierce AI race with Microsoft, Google, Meta, OpenAI, and others. All are investing heavily in powerful computing infrastructure and advanced large language models expected to fuel tomorrow’s economy.
Not just about cost savings
CEO Andy Jassy insists the layoffs are about increasing efficiency, not slashing expenses. He believes AI will reshape the company’s workforce needs, reducing some roles while opening new ones in different areas.
Layoffs start immediately
Job cuts will begin Wednesday. Most affected employees will have 90 days to find a new role within Amazon. Those who aren’t rehired will receive severance packages and other transitional benefits, the company confirmed.
Internal memo revealed plans early
The news first reached employees via an internal email Tuesday night, hours before Amazon’s official blog post. Reports suggest the memo may have been sent prematurely, hinting at a communication slip-up during the announcement rollout.
Grocery business also being trimmed
In a separate move, Amazon is shutting down its Amazon Fresh and Amazon Go stores. The company plans to focus on its more established Whole Foods chain as it consolidates its grocery strategy.
AI reshaping Amazon’s workforce
Jassy has been candid about AI’s impact, stating in a previous blog post that generative AI and autonomous agents will change how many jobs are done. He predicted a need for fewer people in some roles, and more in others yet to emerge.
AI job fears may be overblown, for now
Despite concerns, a recent Vanguard report says jobs most exposed to AI are actually growing faster than others. While some companies are automating entry-level tasks, there’s still no clear evidence of widespread job destruction, yet.
