Amazon Cuts 16,000 Jobs Company-Wide

On Wednesday, Amazon announced a significant reduction in its workforce, cutting approximately 16,000 jobs across various sectors. This decision is part of the company’s ongoing restructuring efforts as it adapts to changing market dynamics.

Details of the Job Cuts

According to Beth Galetti, Amazon’s senior vice president of people experience, the layoffs will affect roles company-wide. In a memo to staff, she stated, “The reductions we are making today will impact approximately 16,000 roles across Amazon.”

As part of their support for affected employees, Amazon is providing 90 days for most U.S.-based workers to explore new internal positions.

Future Hiring and Strategic Focus

Despite the layoffs, Amazon plans to continue hiring in areas deemed critical for future growth. These strategic investments aim to strengthen the organization by simplifying processes and boosting employee ownership.

Recent Employment Trends

This announcement follows Amazon’s previous job cuts of 14,000 in October, primarily impacting corporate roles. At that time, Galetti highlighted artificial intelligence as a key factor shaping the workforce, describing it as “the most transformative technology we’ve seen since the internet.”

Broader Impact on the Job Market

Amazon’s cuts come amid a broader trend where companies are focusing on efficiency amid economic challenges. Many businesses are realigning their workforce with the increasing integration of AI technologies.

• Goldman Sachs announced tighter headcount controls for 2026.
• Pinterest is cutting 15% of its workforce to prioritize AI roles.
• Microsoft eliminated 9,000 jobs last year to boost efficiency.
• Target reduced 1,800 corporate positions to simplify operations.
• Meta Platforms, the owner of Instagram and Facebook, cut around 600 jobs while shifting focus towards AI.

Economic Context

The current job cuts arise against a backdrop of slowing hiring and persistent inflation in the United States. In November, the economy added a mere 56,000 jobs, followed by only 50,000 in December. Inflation stands at 2.7%, which remains higher than the Federal Reserve’s target of 2%.

As Amazon moves forward with its restructuring plan, the broader implications for the labor market and workforce dynamics remain sources of concern for employees across various sectors.