Amazon Cuts 16,000 Corporate Jobs in Second Mass Layoff Wave

At a Glance

• Amazon is cutting 16,000 corporate jobs in its second mass-layoff round in three months.
• The cuts follow a previous wave of 14,000 layoffs announced in October.
• The company says it is restructuring to use generative AI and reduce bureaucracy.
• Amazon’s profits jumped nearly 40% to about $21 billion last quarter, and revenue rose to more than $180 billion.

Amazon’s latest layoffs are its biggest since 2023, when the company cut 27,000 positions. The company said it would give U.S. staff 90 days to find new roles internally, with severance, outplacement services and health insurance for those who do not.

Introduction

Amazon announced a second round of mass layoffs that will eliminate 16,000 corporate jobs, bringing the total number of positions cut this year to over 30,000. The company said the cuts are part of a broader effort to streamline operations and adopt generative artificial intelligence. The layoffs follow a wave of 14,000 job cuts announced in October and are the largest Amazon has undertaken since 2023.

The Scale of the Cuts

The new layoffs were announced on Wednesday, with the company saying that it will eliminate 16,000 corporate positions over the next three months. The first round, announced in October, saw 14,000 positions cut. The most recent round is the company’s largest since 2023, when it shed 27,000 roles.

Beth Galetti, Amazon’s senior vice president, explained the rationale in a blog post on Wednesday. She said the company has been “reducing layers, increasing ownership, and removing bureaucracy.” She added that U.S.-based staff would have 90 days to look for new roles internally. Those who are unsuccessful or do not want a new job will be offered severance pay, outplacement services and health insurance benefits.

> “We’re making these changes, we’ll also continue hiring and investing in strategic areas and functions that are critical to our future,” Galetti said.

Why Amazon is Cutting Jobs

CEO Andy Jassy, who has aggressively cut costs since succeeding founder Jeff Bezos in 2021, said in June that he anticipated generative AI would reduce Amazon’s corporate workforce in the next few years. The company has been using AI to automate many internal processes, and the layoffs are a way to align headcount with new technology.

In October, Jassy said that the cuts were driven by culture, not finances or AI. “It’s culture,” he said. “And if you grow as fast as we did for several years, the size of businesses, the number of people, the number of locations, the types of businesses you’re in, you end up with a lot more people than what you had before, and you end up with a lot more layers.”

Amazon’s profits and revenue growth suggest the company is not in financial distress. In its most recent quarter, Amazon’s profits jumped nearly 40% to about $21 billion, and revenue surged to more than $180 billion.

The Broader Industry Context

The layoffs are part of a larger trend of tech and retail firms trimming staff after the pandemic-era boom. Amazon’s workforce doubled as millions stayed home and boosted online spending.

Hiring has stagnated in the U.S. and in December, the country added a meager 50,000 jobs, nearly unchanged from a downwardly revised figure of 56,000 in November.

Career coach Jamie Johnson of the University of Phoenix advises workers to “future-proof” their jobs in the age of AI.

Labor data points to a reluctance by businesses to add workers even as economic growth has picked up. Many companies hired aggressively after the pandemic and no longer need to fill more jobs. Others have held back due to uncertainty caused by President Donald Trump’s shifting tariff policies, elevated inflation, and the spread of artificial intelligence, which could alter or even replace some jobs.

While economists have described the labor situation in the U.S. as a “no-hire-no-fire” environment, some companies have said they are cutting back on jobs, even this week.

On Tuesday, UPS said it planned to cut up to 30,000 operational jobs through attrition and buyouts this year as the package-delivery company reduces the number of shipments from what was its largest customer, Amazon. That followed 34,000 job cuts in October at UPS and the closing of daily operations at 93 leased and owned buildings during the first nine months of last year.

Also on Tuesday, Pinterest said it plans to lay off under 15% of its workforce, as part of a broader restructuring that arrives as the image-sharing platform pivots more of its money to artificial intelligence.

Investor Reaction

Shares of Amazon Inc., based in Seattle, rose slightly before the opening bell Wednesday. The market reaction suggests investors are weighing the company’s strong financial performance against the headcount reductions.

Key Takeaways

• Amazon is cutting 16,000 corporate jobs in a second round of layoffs that began this week.
• The company is restructuring to use generative AI and reduce bureaucracy.
• The cuts come amid a broader trend of tech and retail firms trimming staff after the pandemic-era surge in online shopping.
• Amazon’s profits and revenue growth suggest the company is not in financial distress.
• Other companies, such as UPS and Pinterest, are also cutting jobs as they adjust to changing market conditions.

Timeline of Amazon Layoffs

Financial Snapshot