Amazon cuts 16,000 jobs in largest workforce reduction ever
Technology giant slashes bureaucracy while doubling down on AI as layoffs since October reach 30,000
Amazon has confirmed it will eliminate 16,000 corporate positions globally, the second major round of layoffs in three months and the largest workforce reduction in the company's 30-year history. The announcement brings total job cuts to approximately 30,000 since October 2025, surpassing the 27,000 roles eliminated during the tech sector's broader downturn in 2023.
The reductions target corporate roles across Amazon's key business units, including its cloud computing division AWS, retail operations, Prime Video streaming, and human resources departments. Beth Galetti, Amazon's senior vice president of people experience and technology, detailed the decision in an internal memo to employees, characterizing the cuts as part of an effort focused on "reducing layers, increasing ownership, and removing bureaucracy."
Chief Executive Officer Andy Jassy, who took over from founder Jeff Bezos in 2021, has emphasized that the restructuring is driven by efficiency concerns rather than immediate financial pressures. In previous communications to staff, Jassy has expressed his vision for Amazon to operate more like the "world's largest startup," anticipating that artificial intelligence capabilities will enable the company to achieve more with a smaller corporate workforce over time.
"While many teams completed their organizational changes in October, others finished their work more recently," Galetti wrote in the memo. She clarified that the company does not intend to conduct regular, massive rounds of cuts, but that teams will continue to evaluate operations and make necessary adjustments.
The scale of the reduction reflects the dramatic expansion of Amazon's corporate footprint during the pandemic-driven e-commerce boom. The company's corporate workforce swelled to approximately 350,000 people by early 2023, with roughly 50,000 of those positions based in the Seattle region. The 30,000 jobs eliminated since October represent about 8.6% of that corporate headcount.
Amazon's shares, which had surged more than 50% in 2025 amid enthusiasm for artificial intelligence investments, have faced investor scrutiny in early 2026 as the market weighs the $35 billion in quarterly capital expenditures required to build AI infrastructure against the timeline for returns. The stock closed at $244.68 on January 27, up 2.6% on the day but trading below its 52-week high of $258.60.
The company's most recent quarterly results underscored the investment challenge. Despite a healthy 13.4% year-over-year revenue growth to $691.3 billion, operating income increased only marginally, and free cash flow declined to $14.8 billion as Amazon poured resources into data centers and AI capabilities. Capital expenditures jumped 55% compared with the prior year, reflecting the massive infrastructure build-out required to compete with Microsoft and Google in the cloud AI market.
Analysts remain broadly optimistic about Amazon's long-term prospects despite the restructuring. Of 67 analysts covering the stock, 64 rate it a buy or strong buy, with a consensus target price of $296.03, according to MarketBeat data. Stifel analyst Mark Kelley recently raised his price target to $300 from $295, maintaining a buy rating and citing strong fourth-quarter e-commerce performance.
However, some analysts have expressed skepticism about whether Amazon's substantial AI investments will generate adequate returns to justify the costs, particularly as growth in its cloud computing division has moderated from the explosive rates seen earlier in the pandemic. AWS remains Amazon's most profitable business unit, but faces intensifying competition from Microsoft's Azure and Google Cloud in the race to provide enterprise AI services.
The job cuts represent a notable shift in strategy for Jassy, who previously led AWS through a period of rapid expansion. Under his leadership, Amazon is attempting to balance the massive infrastructure investments required for AI dominance with shareholder demands for improved operating efficiency. The company faces the additional challenge of integrating workforce reductions while maintaining the innovation culture that has driven its dominance across e-commerce, cloud computing, and digital streaming.
Beyond the corporate layoffs, Amazon also announced in January that it would close all remaining Amazon Go and Amazon Fresh grocery store locations and discontinue its Amazon One biometric palm recognition service, reflecting a broader retreat from experimental physical retail initiatives that had failed to gain significant traction.
The restructuring comes as technology companies across Silicon Valley continue to recalibrate their workforces following a period of aggressive hiring during the pandemic. However, Amazon's 30,000-job reduction since October stands as one of the most significant corporate downsizing efforts in the industry, underscoring the magnitude of the efficiency push underway at the Seattle-based conglomerate.