Amazon to Lay Off 16,000 Employees as AI Competition Accelerates

Second major round of job cuts in three months reflects restructuring aimed at speed, efficiency, and artificial intelligence investment

By: Haitian prime news|1/28/26 |New York

Amazon announced Wednesday it will lay off approximately 16,000 employees, marking the company’s second large-scale workforce reduction in the past three months as it restructures to compete more aggressively in the rapidly evolving artificial intelligence sector.

In a blog post, the company said the decision is part of a broader effort to streamline operations, reduce bureaucracy, and accelerate internal decision-making. Beth Galetti, Amazon’s senior vice president of people, said the company is working to strengthen its organizational structure by cutting layers of management and increasing ownership across teams.

“We’ve been working to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy,” Galetti said.

The announcement follows Amazon’s late October decision to cut 14,000 corporate jobs, a move tied to CEO Andy Jassy’s push to operate the company with greater agility. Jassy has repeatedly emphasized the need for Amazon to remain nimble as artificial intelligence reshapes the technology industry.

Amazon is the second-largest private employer in the United States, behind Walmart. According to a 2024 filing with the U.S. Equal Employment Opportunity Commission, the company employs more than 350,000 corporate workers. Together, the two recent rounds of layoffs represent roughly 9% of Amazon’s office workforce.

Galetti said the latest layoffs are not expected to become a recurring pattern, despite Jassy’s earlier comments that AI-driven efficiency could lead to fewer jobs over time. Instead, she said Amazon is continuously evaluating its structure to ensure it can innovate quickly and effectively for customers. She added that the company will continue to hire strategically in areas critical to its long-term future.

Amazon is competing with major technology firms including Microsoft, Google, Meta, OpenAI, and others that are investing heavily in artificial intelligence infrastructure, computing power, and large language models. While those investments are costly, Jassy has said the current layoffs are driven by efficiency goals rather than simple cost-cutting.

Layoffs are scheduled to begin Wednesday. Most affected employees will be given 90 days to seek new roles within Amazon. Those who are not rehired internally will receive severance pay and additional benefits, according to the company.

The layoffs were reportedly communicated to employees in an internal email sent Tuesday night. That message appeared to have been sent prematurely, referencing a blog post that was not published until Wednesday morning.

Separately, Amazon announced Tuesday it will shut down its Amazon Fresh and Amazon Go grocery operations, as it shifts focus toward expanding its Whole Foods-branded stores.

Jassy has been outspoken about the impact of artificial intelligence on employment. In a message to employees last year, he said generative AI would fundamentally change how work is performed at Amazon.

“As we roll out more Generative AI and agents, it should change the way our work is done,” Jassy wrote. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”

While concerns persist that AI could eliminate large numbers of white-collar jobs, a recent report from Vanguard found that occupations highly exposed to AI automation are currently growing faster than they did before the pandemic. Analysts caution, however, that some companies are already reducing entry-level roles as AI automates tasks or increases worker efficiency.

This story has been updated with additional developments and context.

Sources

CNN

Amazon corporate blog

U.S. Equal Employment Opportunity Commission (2024 filing