Amazon revealed plans to eliminate approximately 16,000 corporate jobs worldwide on January 28, 2026, marking its second major round of layoffs in just three months. Senior Vice President Beth Galetti announced the cuts in an internal blog post, explaining that the company is actively “reducing layers, increasing ownership, and removing bureaucracy” to streamline operations.

The latest reductions build on 14,000 job cuts announced in October 2025, some of which extended into early 2026. Amazon did not specify which divisions or geographic locations would be most affected. U.S.-based employees impacted by the layoffs will receive 90 days to secure another role within the company. Those unable to transition or uninterested in internal opportunities will be offered severance packages, outplacement support, and continued health benefits.

CEO Andy Jassy has long signaled that generative artificial intelligence would shrink Amazon’s corporate headcount over the coming years. In a June 2025 statement, he highlighted AI’s potential to handle tasks previously performed by employees, aligning with broader cost-control efforts initiated after he succeeded Jeff Bezos in 2021. The current wave represents Amazon’s largest single layoff announcement since the 27,000-job reduction in 2023.

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These cuts come despite robust financial performance. In the most recent quarter, Amazon reported profits surging nearly 40% to around $21 billion and revenue exceeding $180 billion. Jassy has repeatedly clarified that the reductions stem from cultural and structural adjustments rather than financial distress. Rapid pandemic-era hiring doubled the workforce, creating excess layers that the company is now addressing.

The move reflects a wider trend across Big Tech and retail sectors, where firms are trimming headcounts inflated during COVID-19 lockdowns while investing heavily in AI. On the same day, Pinterest confirmed plans to cut under 15% of its workforce as part of an AI-focused restructuring. Separately, UPS announced up to 30,000 operational job reductions through attrition and buyouts, partly linked to declining shipment volumes from Amazon.

Amazon emphasized that it continues to hire in strategic areas critical to long-term growth, even as overall corporate staffing declines. The announcement had a muted impact on shares, which rose slightly in pre-market trading.

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