Amazon Cuts 16,000 Corporate Jobs on AI‑Driven Reorganization, Announces Transition Support
Updated (2 articles)
Amazon Announces Second Wave of Corporate Layoffs On Jan 28, 2026 Amazon disclosed cutting about 16,000 corporate positions, the biggest reduction since its 2023 27,000‑job cut and following an October round that removed 14,000 workers [1][2]. The layoffs represent the second large‑scale reduction within three months, targeting corporate rather than fulfillment staff [2]. The company did not specify which business units will be affected [1].
Generative AI Cited as Primary Driver CEO Andy Jassy linked the cuts to the deployment of generative artificial intelligence, which he warned in June would shrink corporate headcount [1][2]. Amazon plans to replace certain roles with AI tools as part of a broader effort to streamline operations [2]. Executives argue the move is about culture and eliminating excess layers, not financial distress [2].
Transition Support and Severance Package Detailed Senior Vice President Beth Galetti outlined a 90‑day internal transfer window for U.S. employees, after which displaced staff will receive severance, outplacement services, and continued health benefits [1][2]. She described the restructuring as “reducing layers, increasing ownership, and removing bureaucracy” [1][2]. The company emphasizes support for affected workers while accelerating ownership at remaining staff [1].
Financial Results Remain Robust Amid Cuts In its most recent quarter Amazon reported a profit increase of nearly 40 % to about $21 billion and revenue exceeding $180 billion [1][2]. These strong results suggest the layoffs are not driven by weak earnings [1][2]. State labor agencies have not yet received required WARN notices for the cuts in California, Washington, or Virginia, highlighting a compliance gap [1].
Sources
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1.
King5: Amazon Announces Cut of About 16,000 Corporate Jobs: Highlights the 16,000‑job cut, pandemic‑era hiring surge, AI‑driven reductions, Beth Galetti’s transition plan, strong quarterly profit, and notes that state agencies have not received WARN notices .
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2.
King5: Amazon Announces 16,000 Corporate Layoffs, Citing AI Shift and Organizational Streamlining: Emphasizes AI as the driver, cultural rationale over finances, 90‑day internal transfer window, robust earnings, and places the cuts in a broader labor‑market context with other firms also trimming staff .
Timeline
2020‑2021 – Amazon’s workforce swells dramatically as the COVID‑19 pandemic drives a surge in online shopping, prompting a hiring boom that later requires scaling back when demand normalizes[1].
2023 – Amazon executes its previous largest reduction, cutting 27,000 jobs across the company as part of a post‑pandemic restructuring effort[1].
June 2025 – CEO Andy Jassy tells investors that generative artificial intelligence will “trim the corporate headcount in coming years,” signalling AI‑driven automation as a future workforce reducer[1].
October 2025 – Jassy stresses that the upcoming layoffs are about “culture” and eliminating excess layers after rapid growth, not about financial pressure[2].
October 2025 – Amazon conducts a layoff round that removes about 14,000 corporate workers, marking the first large‑scale reduction since the 2023 cuts[1].
December 2025 – The U.S. labor market adds only 50,000 jobs, barely above the revised November figure, while peers such as UPS and Pinterest announce their own sizable workforce reductions, underscoring a broader hiring slowdown[2].
Jan 28 2026 – Amazon announces a second wave of corporate layoffs, cutting roughly 16,000 positions—the biggest reduction since 2023—and frames the move as part of an AI‑enabled efficiency drive[1][2].
Jan 28 2026 – Senior Vice President Beth Galetti writes that Amazon is “reducing layers, increasing ownership, and removing bureaucracy,” and gives U.S. staff 90 days to seek internal transfers, with severance, outplacement services, and continued health benefits for those who do not receive new roles[1][2].
Jan 28 2026 – Amazon reports a profit jump of nearly 40 % to about $21 billion and revenue exceeding $180 billion, indicating the layoffs are not driven by financial distress[1][2].
Jan 28 2026 – California’s workforce agency, along with counterparts in Washington and Virginia, reports that no required layoff notices have been filed for the latest cuts, highlighting a compliance gap in the rollout[1].
April 2026 (expected) – The 90‑day internal‑transfer window announced on Jan 28 is set to close, after which affected employees will receive severance packages and outplacement support as outlined by Galetti[1].
External resources (2 links)
- https://www.bls.gov/news.release/pdf/empsit.pdf (cited 2 times)