Amazon said it will eliminate 16,000 corporate jobs, completing a planned reduction of about 30,000 roles since October as the company restructures amid shifting demand, automation, and increased use of artificial intelligence.
By yourNEWS Media Newsroom
Amazon confirmed Wednesday that it is cutting 16,000 corporate jobs, completing a workforce reduction plan that totals roughly 30,000 positions since October, while leaving open the possibility of additional cuts.
The reductions represent nearly 10 percent of Amazon’s corporate workforce, though they account for a relatively small share of the company’s total global headcount of approximately 1.58 million employees, the majority of whom work in fulfillment centers and warehouses. The move follows reporting last week that the company was preparing a second major round of corporate layoffs as part of a broader restructuring effort.
In a statement addressing employees, Amazon’s top human resources executive, Beth Galetti, said the cuts were necessary to strengthen the company by “reducing layers, increasing ownership, and removing bureaucracy.” Galetti indicated that the process may not be complete, noting that some teams will continue to “make adjustments as appropriate.”
The latest layoffs mark the second significant reduction in three months. In October, Amazon eliminated about 14,000 corporate roles, citing the growing role of artificial intelligence in streamlining work and concerns about changes in corporate culture. The company has also acknowledged that it overhired during the COVID-19 pandemic, when online shopping demand surged and staffing expanded rapidly to keep pace.
Addressing employee concerns about the possibility of recurring job cuts, Galetti wrote, “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.”
The announcement followed an internal error earlier this week, when Amazon mistakenly sent an email referencing the layoffs under the name “Project Dawn” to some Amazon Web Services employees, prompting confusion and concern among staff.
The workforce reductions also reflect broader changes across the technology sector as artificial intelligence tools increasingly automate tasks once performed by corporate employees. Advances in AI assistants have enabled companies to handle work ranging from routine administrative duties to complex software development with greater speed and efficiency, accelerating adoption across industries.
Amazon Chief Executive Officer Andy Jassy said last summer that increased use of AI would lead to more automation and, as a result, fewer corporate roles over time. At the World Economic Forum’s annual meeting in Davos last week, several executives echoed that view, while others cautioned that AI could also be used as justification for job cuts that companies were already planning.
Amazon is not alone in reshaping its workforce. Other major technology firms, including Meta Platforms and Microsoft, sharply expanded hiring during the pandemic and have since moved to reduce headcount as growth slowed and priorities shifted.
The company has also continued to pull back from physical retail. On Tuesday, Amazon said it plans to close all remaining brick-and-mortar Amazon Fresh grocery stores and Amazon Go locations, further scaling back its in-person retail strategy.
At the same time, Amazon has increased investment in robotics and automation at its warehouses, aiming to speed packaging and delivery operations, reduce reliance on human labor, and lower costs across its e-commerce business.
Amazon is scheduled to report quarterly earnings next week. Shares of the company rose less than 1 percent in pre-market trading following the layoff announcement.
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