Amazon cuts 16,000 corporate jobs in latest efficiency drive
Amazon announced on Wednesday that it plans to cut approximately 16,000 corporate jobs, marking its second major round of layoffs since October. The company cited ongoing efforts to streamline operations, reduce organizational layers, increase accountability, and eliminate bureaucracy as key reasons behind the move. The job reductions are part of a broader strategy to boost innovation and agility, particularly as Amazon accelerates its investment in artificial intelligence. The latest cuts follow a previous round in October, when about 14,000 corporate employees were laid off, and bring the total number of job reductions since October to 30,000—roughly 10% of Amazon’s corporate and tech workforce, which numbers around 350,000. In a blog post, Amazon’s senior vice president of people experience and technology, Beth Galetti, stated that while the company is not aiming to establish a recurring cycle of layoffs every few months, it remains committed to continuous evaluation of team structures, ownership, speed, and customer-focused innovation. “That’s not our plan,” she wrote. “But just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate.” This signals that further workforce adjustments may still occur, though not on a predictable schedule. The announcement comes shortly after some employees in Amazon’s cloud computing division received an email—sent by mistake—acknowledging “organizational changes” and referencing Galetti’s post. The message confirmed that affected colleagues had been notified, underscoring the ongoing nature of the restructuring. Amazon’s workforce stood at about 1.58 million employees as of the end of its third quarter, with the vast majority employed in warehouses, logistics, and delivery operations. The recent layoffs are concentrated in corporate and technology roles, reflecting a shift from the company’s rapid expansion during the pandemic. During that period, Amazon significantly increased hiring to meet soaring demand for online shopping and cloud services. However, as the market has cooled and the company seeks to improve efficiency, leadership has prioritized cost control and operational streamlining. CEO Andy Jassy has led this effort to reduce the workforce since 2022, when Amazon laid off over 27,000 employees across its operations. Additional smaller-scale cuts have occurred in 2024, and the company has consistently emphasized that the restructuring will continue into 2026, with further reductions expected in areas where roles can be consolidated or automated. The job cuts align with Amazon’s strategic pivot toward AI, where the company is investing heavily in technologies like generative AI, machine learning, and cloud-based AI tools. By trimming non-core roles and improving organizational efficiency, Amazon aims to free up resources and talent to focus on high-growth areas, including AI innovation and customer experience. While the layoffs have drawn attention and concern from employees and industry observers, Amazon maintains that the changes are necessary to remain competitive and agile in a rapidly evolving tech landscape. The company continues to hire in key technical and operational roles, particularly in AI, data science, and cloud infrastructure, suggesting that the restructuring is not a sign of decline but a recalibration of priorities. Overall, Amazon’s latest move reflects a broader trend among major tech firms to reevaluate workforce size and structure in response to economic shifts, rising costs, and the need for innovation. The company’s ability to balance efficiency with growth will be critical as it navigates the future of e-commerce, cloud computing, and artificial intelligence.
