Top Headlines

Feeds

Amazon Cuts 16,000 Corporate Jobs, Shutters Fresh and Go Stores Amid AI‑Driven Reorg

Updated (3 articles)
  • Jeff Bezos, Founder and Executive Chairman of Amazon speaks onstage during day two of the America Business Forum at Kaseya Center on November 6, 2025 in Miami, Florida.
    Image: Newsweek
    Jeff Bezos, Founder and Executive Chairman of Amazon speaks onstage during day two of the America Business Forum at Kaseya Center on November 6, 2025 in Miami, Florida. Source Full size
  • Jeff Bezos, Founder and Executive Chairman of Amazon speaks onstage during day two of the America Business Forum at Kaseya Center on November 6, 2025 in Miami, Florida.
    Image: Newsweek
    Jeff Bezos, Founder and Executive Chairman of Amazon speaks onstage during day two of the America Business Forum at Kaseya Center on November 6, 2025 in Miami, Florida. Source Full size

Massive Corporate Layoffs Announced Amazon disclosed a second wave of 16,000 corporate job eliminations on Jan. 28, bringing total cuts to roughly 30,000 in three months—about 9 % of its 350,000‑plus corporate workforce[2][3]. The memo gives most U.S. employees up to 90 days to apply for internal openings and promises severance for those who cannot be rehired[2]. The company framed the move as a one‑time restructuring, not a recurring rhythm, and emphasized strategic hiring in AI‑critical areas[2].

AI Cited as Primary Driver of Reorganization Senior Vice President Beth Galetti described generative AI as “the most transformative technology since the internet” and said Amazon must shed management layers, boost ownership, and eliminate bureaucracy to stay agile[1][2]. CEO Andy Jassy echoed the “world’s biggest startup” mantra, linking the cuts to faster decision‑making as AI reshapes the sector[2]. A Vanguard report noted that occupations highly exposed to AI are actually growing, suggesting the fear of massive job loss may be overstated[2].

Retail Footprint Adjusted Simultaneously On the same day as the layoff announcement, Amazon announced the closure of its Fresh and Go grocery formats, redirecting resources toward Whole Foods‑branded locations[2]. The store shutdown is presented as part of the broader effort to streamline operations and focus on higher‑margin concepts[2]. This retail shift aligns with the company’s stated goal of reducing bureaucracy across all business units[1].

Financial Position Remains Robust Despite the workforce reductions, Amazon reported $180.2 billion in net sales for the September quarter and maintains a market capitalization near $2.5 trillion[1]. Executives emphasized that the layoffs are not driven by financial distress but by a strategic pivot toward AI‑enabled growth[1]. Historical precedents such as IBM’s 1993 cuts and Microsoft’s 2014 reductions illustrate that large tech firms often restructure around new technologies without compromising overall financial health[1].

Workforce Retraining Concerns Highlighted Rutgers Business School assistant professor Zeki Pagda warned that converting a logistics‑heavy workforce into AI‑agent developers poses significant skill‑gap challenges[1]. He argued that rapid retraining may be difficult, underscoring the broader societal implications of AI‑driven layoffs[1]. Amazon has not detailed specific upskilling programs beyond the internal mobility window[2].

Sources

Timeline

1993 – IBM cuts 50,000 jobs after shifting away from mainframes, establishing a precedent for tech‑driven workforce reductions that Amazon later cites [1].

2014 – Microsoft eliminates 18,000 positions following its Nokia acquisition, illustrating how large firms restructure around new technology strategies [1].

Early 2000s – Cisco slashes thousands of jobs while pivoting to cloud services, further demonstrating a pattern of layoffs tied to tech pivots [1].

Oct 2025 – Amazon removes 14,000 corporate roles in a wave announced by CEO Andy Jassy, who frames the move as running “the world’s biggest startup” and emphasizes agility amid AI evolution [2][3].

Oct 2025 – Beth Galetti describes the October cuts as a step toward “reducing layers, increasing ownership, and removing bureaucracy,” signaling a shift toward a leaner organization [2][3].

Jan 28, 2026 – Amazon announces a second wave of 16,000 corporate layoffs, bringing total cuts to 30,000 (≈9 % of its corporate workforce) and launching the reductions across the firm that same day [2][3].

Jan 28, 2026 – In the same announcement, Amazon declares the closure of all Amazon Fresh and Amazon Go stores, redirecting resources to Whole Foods‑branded locations as part of the AI‑driven restructuring [2].

Jan 28, 2026 – Beth Galetti posts the layoff notice on the company blog, reiterating that Amazon “reduces layers, increases ownership, and removes bureaucracy” and assures employees that the cuts will not become a “new rhythm” while promising strategic hiring in critical future areas [2][3].

Jan 28, 2026 – Amazon offers affected U.S. employees up to 90 days to apply for internal roles, with severance and additional benefits for those who do not find new positions, highlighting the company’s internal mobility program [2][3].

Jan 31, 2026 – Beth Galetti links AI to the reorganization, calling it “the most transformative technology we’ve seen since the internet” and stating that fewer management layers are needed to move quickly in an AI‑centric market [1].

Jan 31, 2026 – Rutgers Business School assistant professor Zeki Pagda warns that retraining Amazon’s logistics‑focused workforce for generative‑AI agent development poses significant skill‑gap challenges, underscoring broader industry concerns [1].

Jan 31, 2026 – Amazon reports $180.2 billion in net sales for the September quarter and a market cap of roughly $2.5 trillion, indicating that the layoffs are not driven by financial distress but by strategic restructuring [1].

2026 onward – Amazon signals plans to hire strategically in areas critical to its AI‑driven future, aiming to bolster capabilities while maintaining a lean corporate structure, as outlined by Galetti’s memo [1][2].

External resources (8 links)