Seattle, Jan 28, 2026 — WorldMajorEvents
In one of the most significant workforce reductions in its history, Amazon.com Inc. has confirmed it will lay off approximately 16,000 employees worldwide, as the tech and e-commerce giant moves to streamline operations, cut bureaucracy and ramp up deployment of artificial intelligence (AI) across its global business.
This latest round of job cuts comes just three months after Amazon slashed around 14,000 corporate roles in late 2025, bringing the total number of recent layoffs to roughly 30,000 positions — nearly 10% of its corporate workforce.
Why Amazon Is Cutting Jobs — Strategic Shift Toward AI and Efficiency
Amazon says these layoffs are not driven by financial trouble, but are part of a deliberate effort to improve organisational speed, accountability and cost-efficiency.
According to Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, the job reductions reflect the company’s ongoing restructuring to:
- Reduce layers of management and unnecessary bureaucracy
- Increase ownership and decision-making speed
- Support operational focus on strategic growth areas like AI and cloud computing
Galetti emphasised in an internal memo that while many teams completed restructuring earlier, others are finalising that process now, which led to this second major wave of layoffs.
AI’s Role — Efficiency Gains and Workforce Transformation
A key theme in Amazon’s explanation is the company’s increasing adoption of AI tools and automation technologies. CEO Andy Jassy has previously stated that advanced AI will reshape how work gets done at Amazon, meaning fewer roles in traditional corporate functions and more emphasis on AI-enabled business processes.
Industry analysts note that Amazon’s focus on AI mirrors broader trends in Big Tech, where companies are cutting roles that can be automated while investing heavily in AI research, machine learning infrastructure and productivity platforms.
What Areas and Teams Are Affected?
The layoffs primarily affect corporate roles worldwide, including major business units such as:
- Amazon Web Services (AWS)
- Retail Operations
- Prime Video
- Human Resources and Admin Functions
Warehouse workers and logistics staff, who comprise the bulk of Amazon’s over 1.5 million employees are not part of these corporate cuts.
A mistaken internal email mistakenly labelled the layoffs under the codename “Project Dawn,” briefly unsettling employees before it was marked cancelled — fueling confusion inside Amazon offices.
Employee Support and Severance Plans
Amazon has said it will offer impacted U.S. employees 90 days to find other roles within the company, with international timelines varying based on local labour laws. For those who opt out or are unable to secure new roles internally, the company will provide:
- Severance packages
- Outplacement support
- Health insurance benefits (where applicable)
Despite the layoffs, Amazon has stressed it will continue hiring where needed, particularly in areas tied to long-term growth such as AI, robotics, and cloud services.
Global Impact and Industry Context
This round of layoffs at Amazon is one of the biggest since the company cut 27,000 jobs in late 2022 and early 2023 after a pandemic-era hiring surge. While corporate roles have seen reductions, Amazon still employs millions in logistics, delivery, customer service and fulfilment around the world.
Tech and delivery companies such as United Parcel Service (UPS) and Pinterest have also announced job cuts in recent months, underscoring a broader shift in the labour market as companies adapt to changing demand, rising costs, and the evolving capabilities of AI.
What This Means for the Future of Work
Amazon’s decision to cut 16,000 jobs highlights a pivotal moment in how technology companies balance human capital with machine-driven efficiency. While AI promises productivity gains, it also raises questions about job security, skill requirements, and workforce readiness for rapid digital transformation.
Industry experts say that while some roles disappear, new opportunities in AI development, data science, machine learning and cloud architecture will grow, potentially offsetting losses for employees who pursue skills in these areas.
Conclusion — A Turning Point in Tech Workforce Strategy
Amazon’s January 2026 layoffs reflect a broader evolution in corporate strategy — where artificial intelligence, operational efficiency and lean organisational structures are taking centre stage in shaping the future of work. These changes illustrate the challenges and opportunities emerging as leading tech companies adapt to competitive pressures and technological disruption.
As Amazon continues to invest in AI innovation, the company faces the complex task of navigating workforce transformation while maintaining resilience, productivity and talent development.
