New Delhi | Amazon has announced plans to lay off around 16,000 corporate employees worldwide, marking its second major round of job cuts in just three months as the global technology giant restructures its workforce following pandemic-era overhiring and accelerates the use of artificial intelligence across operations.
The reductions, disclosed on January 28, will impact approximately 4.6% of Amazon’s corporate workforce, which currently stands at about 350,000 employees. The company’s overall headcount, including warehouse and logistics staff, was around 1.57 million as of September 30, with the bulk of workers employed in fulfilment centres rather than corporate roles.
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In a message to employees, Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, said the company would begin the process by offering most US-based employees up to 90 days to seek alternative roles within the organisation. The timeline may vary in other countries depending on local labour laws and regulatory requirements.
“For teammates who are unable to find a new role at Amazon or who choose not to look for one, we’ll provide transition support including severance pay, outplacement services, health insurance benefits, and more,” Galetti said.
She stressed that the company is working to manage the transition in a structured manner, even as it undertakes what it describes as necessary organisational changes.
Focus on efficiency and flatter structure
Amazon said the latest job cuts are part of a broader effort to reduce management layers, eliminate bureaucracy and speed up decision-making. “We’ve been working to strengthen our organisation by reducing layers, increasing ownership, and removing bureaucracy,” Galetti said, adding that the goal is to create leaner teams with clearer accountability.
The company sought to reassure employees that this does not signal a pattern of frequent mass layoffs. “Some of you might ask if this is the beginning of a new rhythm — where we announce broad reductions every few months. That’s not our plan,” she said.
Still, the announcement underscores continued uncertainty across the global technology sector, where companies that expanded aggressively during the pandemic have been recalibrating headcount amid slower growth, cost pressures and rapid technological shifts.
AI reshaping the workforce
Amazon CEO Andy Jassy has repeatedly highlighted artificial intelligence as a transformative force for the company. He has said efficiency gains driven by AI tools are likely to reduce the need for certain corporate roles over time, even as new positions emerge in other areas.
Industry analysts note that the latest round of layoffs reflects a broader trend among large tech firms, which are increasingly investing in automation and AI-driven systems to streamline operations, customer service, logistics and internal processes.
At Amazon, AI is being deployed across business units, from cloud computing and advertising to supply chain optimisation and internal productivity tools. While the company continues to hire selectively in strategic areas, the overall direction points to a smaller, more specialised corporate workforce.
Second major cut in months
The current announcement follows earlier job reductions as Amazon reassessed staffing levels after the pandemic-driven surge in e-commerce demand subsided. Like several peers in the tech industry, the company had expanded rapidly during 2020–2022 to meet unprecedented growth, only to face a more challenging macroeconomic environment in subsequent years.
The layoffs come at a time when global markets are closely watching how large technology firms balance cost control with long-term innovation, particularly as AI reshapes traditional roles and workflows.
What lies ahead
While Amazon has emphasised support for affected employees, the move is likely to heighten concerns among white-collar workers about job security in an increasingly automated corporate environment. Analysts say further restructuring across the tech sector cannot be ruled out as companies adapt to slower growth, shareholder pressure and evolving business models.
For Amazon, the latest cuts reflect a strategic recalibration rather than a retreat, with leadership signalling that future growth will depend less on scale and more on efficiency, speed and technology-led productivity.
The company said it will continue to invest in areas it sees as critical to long-term growth, even as it reshapes its corporate workforce to align with what it describes as the next phase of its evolution.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
