Amazon unveiled plans Wednesday to slash 16,000 jobs in its second major workforce reduction within three months, citing a drive to streamline operations amid fierce competition in artificial intelligence, with chief executive Andy Jassy signaling that emerging AI tools will reshape roles across the tech giant.
The cuts, impacting roughly nine percent of the company’s corporate staff, follow an October 2025 layoff of 14,000 employees and aim to eliminate managerial layers for faster decision-making, according to an internal memo and blog post.
Affected workers will have 90 days to seek internal positions, with those unable to do so receiving severance packages and continued benefits.
Senior vice president of people Beth Galetti described the move as part of efforts to “strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy.”
She assured that such reductions would not become routine, stating: “The waves of layoffs won’t become a ‘new rhythm,’” while pledging strategic hires in key sectors.
Jassy linked the overhaul to AI advancements, writing: “As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”
“Many of these agents have yet to be built, but make no mistake, they’re coming, and coming fast,” he added.
The announcement coincided with Amazon’s decision to shutter its Amazon Fresh and Amazon Go grocery chains, redirecting focus to Whole Foods amid broader retail adjustments.
As the United States’ second-largest private employer after Walmart, Amazon’s actions reflect industry-wide shifts driven by AI, with rivals like Microsoft, Google, and Meta also investing heavily in the technology, potentially automating tasks and altering employment landscapes.
