Amazon has carried out another major round of layoffs, cutting approximately 16,000 corporate jobs in late January 2026. This move completes a broader workforce reduction plan that began in October 2025, bringing the total number of job cuts to around 30,000 employees. The decision reflects Amazon’s efforts to improve operational efficiency while accelerating its transition toward artificial intelligence–driven processes.
The layoffs come amid a wider restructuring across the global technology sector, where companies are streamlining management structures and scaling back underperforming business units. At Amazon, nearly 10% of corporate staff have been affected, making this the company’s largest workforce reduction to date. However, the majority of Amazon’s overall workforce—mainly warehouse and fulfillment employees—remains unaffected.
According to company executives, the job cuts are intended to reduce internal bureaucracy, strengthen accountability, and enable faster decision-making. Alongside the layoffs, Amazon has also shut down several physical retail initiatives, including remaining Amazon Fresh and Amazon Go stores, and discontinued its palm-scanning payment system, Amazon One. These actions signal a strategic shift away from experimental ventures toward core business efficiency.
The impact of the layoffs has been widespread across multiple divisions. Employees from Amazon Web Services (AWS), Alexa, Prime Video, devices, advertising, and last-mile delivery teams have reported being affected. Tensions rose internally after an email referencing the layoffs under the name “Project Dawn” was mistakenly sent early to some AWS staff, causing confusion and anxiety among employees.
Amazon acknowledged that it had overexpanded its workforce during the COVID-19 pandemic, when online shopping demand surged. While company leadership stated that recurring large-scale layoffs are not part of its long-term plan, they also indicated that further adjustments may occur where necessary. Overall, the situation highlights the challenges facing major technology firms as they balance growth, cost control, and AI-driven transformation.
