Amazon cuts about 16,000 corporate jobs in latest restructuring round

Amazon is cutting roughly 16,000 corporate roles, marking its second large round of white-collar layoffs in three months as the company continues a broad effort to streamline its organization after years of rapid expansion.

The reductions come as the world’s largest online retailer reworks its management structure, pares back bureaucracy, and prepares for longer-term changes driven by generative artificial intelligence, according to company executives.

The move underscores how even highly profitable technology firms are recalibrating workforces after pandemic-era hiring surges, amid slower hiring across the U.S. economy and growing uncertainty about how AI will reshape office work.

Scope of the job cuts

Amazon confirmed the job reductions on Wednesday, though it did not specify which teams, job functions, or geographic regions would be affected. The company said the cuts follow an earlier round of layoffs announced in October, when it disclosed plans to eliminate about 14,000 roles.

Some business units completed their restructuring at that time, while others finalized changes only in recent weeks, according to Beth Galetti, Amazon’s senior vice president of people experience and technology.

In a blog post, Galetti said the company has been “reducing layers, increasing ownership, and removing bureaucracy,” language that reflects a broader push to flatten management structures across Amazon’s sprawling corporate organization.

For U.S.-based employees, Amazon said affected workers will have 90 days to apply for other internal positions. Those who do not secure a new role or choose not to pursue one will be offered severance pay, health insurance coverage, and outplacement support.

AI and workforce strategy

Amazon executives have been increasingly explicit about the role artificial intelligence will play in reshaping corporate jobs. Chief executive Andy Jassy said in June that advances in generative AI are likely to reduce the company’s corporate workforce over time, as automation improves productivity in areas such as software development, data analysis, and internal operations.

While Amazon has emphasized that it will continue hiring in “strategic areas,” the company has also signaled that fewer people may be needed in certain office roles as AI tools become more capable.

Galetti reiterated that message on Wednesday, saying Amazon would keep investing in areas critical to its long-term growth even as it cuts elsewhere. The company has not said whether the latest layoffs are directly tied to specific AI deployments.

Largest cuts since 2023

The newly announced reductions represent Amazon’s biggest layoffs since 2023, when the company eliminated about 27,000 jobs in multiple waves. Those cuts marked a sharp reversal after Amazon nearly doubled its workforce during the COVID-19 pandemic, when lockdowns fueled a surge in online shopping, cloud computing demand, and logistics hiring.

Like many technology and retail firms, Amazon has spent the past two years trimming headcount to bring costs back in line with slower growth and more normalized consumer behavior.

Despite the scale of the cuts, Amazon’s financial performance remains strong. In its most recent quarter, the company reported profits of about $21 billion, up nearly 40% from a year earlier, while revenue rose to more than $180 billion.

Regulatory notices and state responses

State labor agencies said they had not yet received formal notices tied to the latest layoffs. California’s workforce agency said Amazon had not filed a Worker Adjustment and Retraining Notification, which is typically required for large-scale job cuts.

Officials in Washington state, where Amazon is headquartered, and Virginia, home to major Amazon offices, also said they had no immediate reports of notices related to the reductions.

Such filings often lag initial announcements, particularly when companies stagger layoffs across departments or offer internal transfers before final separations.

Broader labor market context

Amazon’s cuts come amid signs of a cooling U.S. labor market, particularly for higher-paying professional roles. Hiring growth has slowed in recent months, with U.S. employers adding roughly 50,000 jobs in December, according to government data, little changed from November.

Economists have described the current environment as one of cautious stability, where companies are reluctant to add new workers but also hesitant to initiate mass firings unless restructuring is unavoidable.

Uncertainty around inflation, shifting trade policies under President Donald Trump, and the rapid adoption of artificial intelligence have all contributed to a more conservative approach to hiring, economists say.

Who is most exposed to AI disruption

Several economic studies have suggested that jobs involving computer work, engineering, and data analysis are among the most exposed to generative AI, which can already assist with writing code, drafting documents, and analyzing information.

Research released last week by the Brookings Institution found that workers in many technical roles are often better positioned to adapt, thanks to higher levels of education, transferable skills, and financial buffers.

By contrast, the study noted that millions of U.S. workers in administrative and clerical roles face both high exposure to AI and fewer resources to transition. Those jobs are disproportionately held by women, skew older, and are often concentrated in smaller cities with limited alternative employment options.

Tech and retail layoffs continue

Amazon is not alone in cutting jobs this week. On Tuesday, UPS said it plans to reduce up to 30,000 operational positions through attrition and buyouts as it scales back shipments linked to Amazon, once its largest customer.

The move follows earlier reductions at UPS, including 34,000 job cuts announced in October and the closure of operations at dozens of facilities last year.

Pinterest also said Tuesday that it plans to lay off fewer than 15% of its workforce as part of a restructuring tied to increased investment in artificial intelligence.

Culture, not finances, Jassy says

Amazon executives have repeatedly said the company’s layoffs are not driven by financial stress. Speaking after earlier job cuts last year, Jassy said the changes were primarily about organizational culture rather than cost-cutting.

“If you grow as fast as we did for several years, you end up with a lot more people and a lot more layers,” he said in October. “That creates bureaucracy, and it slows decision-making.”

Amazon shares fell $2.47, or just over 1%, in late afternoon trading following news of the layoffs.