Amazon has announced plans to eliminate approximately 16,000 positions across its global workforce, marking the company’s second major round of job cuts in recent months as it continues a broad restructuring effort.
In a memo to employees released Wednesday, Beth Galetti, Amazon’s senior vice president of people experience, said the layoffs are part of an effort to streamline the organization and improve efficiency across teams.
“The reductions we are making today will impact approximately 16,000 roles across Amazon,” Galetti said, adding that most U.S.-based employees affected by the cuts will be given 90 days to seek other roles within the company. Amazon said it will continue hiring in select areas it considers critical to its long-term strategy.
Second Major Workforce Reduction Since Fall
The latest cuts follow a previous reduction of about 14,000 roles announced in October, which primarily affected corporate positions. At that time, Amazon leadership pointed to the growing role of artificial intelligence as a key factor reshaping how work is done across the company.
While AI was not directly referenced in Wednesday’s announcement, Galetti said the layoffs are intended to reduce management layers, increase individual accountability, and eliminate unnecessary bureaucracy.
Amazon reported last year that it employs roughly 1.55 million people worldwide, making it one of the largest private employers globally.
Store Closures and Strategic Shifts
The job reductions come amid broader changes to Amazon’s business. Earlier this week, the company said it would close several Amazon Go and Amazon Fresh physical retail locations, with plans to convert some sites into Whole Foods Market stores.
The moves reflect a sharper focus on core operations and profitability as Amazon reassesses underperforming segments of its business.
Industry-Wide Pressure From AI and Slower Hiring
Amazon’s announcement comes as companies across multiple industries trim headcounts while investing more heavily in artificial intelligence and automation. Firms increasingly cite “efficiency” as they realign staffing with new technologies in a cooling labor market.
Several major companies have recently announced layoffs tied to similar goals. Pinterest said it would reduce its workforce by 15% as it shifts resources toward AI-driven roles, while Microsoft and Meta Platforms cut thousands of jobs last year to streamline operations. Retailers such as Target have also reduced corporate staff to simplify organizational structures.
At the same time, broader economic conditions remain uncertain. U.S. job growth slowed significantly late last year, with modest gains following several months of contraction. Inflation, while off its peak, remains elevated at 2.7%, continuing to pressure both consumers and employers.
Ongoing Transformation
Amazon said the latest round of layoffs is part of a longer-term effort to adapt to changing economic conditions and evolving technology. While the company emphasized its commitment to innovation and future growth, the announcement underscores the challenges facing even the largest technology firms as they navigate a shifting global economy.
