Amazon.com Inc. escalated its organizational restructuring on Wednesday, announcing the elimination of approximately 16,000 corporate roles globally, just three months after slashing 14,000 positions in October 2025.
The combined reductions total around 30,000 jobs, representing nearly 10% of the company’s estimated 350,000 corporate workforce, as the e-commerce giant intensifies efforts to streamline operations, reduce bureaucratic layers, and enhance decision-making speed in an era dominated by artificial intelligence advancements.
Beth Galetti, Senior Vice President of People Experience and Technology, detailed the cuts in an internal memo shared on Amazon’s corporate blog, framing them as a continuation of initiatives launched last fall.
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“As I shared in October, we’ve been working to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy,” Galetti wrote.
She noted that while many teams completed changes in October, others required additional time, leading to the current phase.
The layoffs span multiple divisions, including Amazon Web Services (AWS), retail operations, Prime Video, human resources, and advertising, with impacts felt across global teams.
U.S.-based employees affected by the cuts will receive at least 90 days to search for internal opportunities, with those unable to secure new roles or choosing to depart offered severance packages, continued health insurance benefits, and outplacement support.
For international staff, assistance will comply with local labor laws, including consultation processes where required.
The announcement followed an inadvertent early disclosure: on January 27, some AWS employees received a calendar invitation and email referencing “Project Dawn” and impending organizational changes, sparking widespread confusion before the official reveal.
The message was quickly recalled, but it amplified anxiety among the workforce.
CEO Andy Jassy has positioned these reductions as critical to fostering a more agile, “startup-like” culture, emphasizing that they are not primarily driven by cost savings or direct AI automation but by aligning the organization with long-term innovation goals. Jassy previously linked efficiency gains from AI to eventual headcount reductions, noting in 2025 that the technology would enable faster invention and operational streamlining.
Galetti echoed this in her memo, assuring that while no new rhythm of mass layoffs is planned, teams will continue evaluating structures for optimal customer impact.
The cuts coincide with Amazon’s broader efficiency initiatives, including the closure of its Amazon Go convenience stores and Amazon Fresh grocery outlets, announced earlier this week. The decision affects dozens of locations, as the company cited challenges in delivering a “truly distinctive customer experience with the right economic model.”
Some sites will transition to Whole Foods Market formats, while Amazon shifts focus to online grocery delivery and its established supermarket chain.
Amazon’s global headcount exceeds 1.5 million, with the corporate segment comprising a smaller but critical portion dedicated to strategy, technology, and innovation. The company has aggressively trimmed management layers, tightened spending, overhauled performance reviews, and mandated a five-day office return for most corporate staff since late 2025.
These measures accelerated post-pandemic, as explosive growth gave way to slower expansion, prompting executives to address what they termed a “bloated” structure.
The reductions mirror a sector-wide trend in Big Tech, where firms are reallocating resources toward AI while optimizing workforces. Microsoft eliminated about 15,000 positions in 2025, with CEO Satya Nadella emphasizing focus on AI transformation. Meta Platforms has automated roles in risk and operations, informing employees that their functions were being replaced by AI systems.
Across the industry, over 20,000 tech jobs have been cut in early 2026 alone, per tracking from Layoffs.fyi.
Amazon’s stock dipped modestly in after-hours trading following the announcement, but the company’s financial health remains strong, with 2025 revenue topping $600 billion and AWS continuing to dominate cloud computing.
Jassy’s vision for a leaner, more innovative Amazon includes record $125 billion capital expenditures projected for 2026, largely for AI infrastructure. For the workforce, however, the cuts represent a period of uncertainty, even as hiring persists in high-priority areas like AI and cloud services.