Amazon has disclosed plans to cut 16,000 jobs globally, marking its second round of layoffs in three months and underscoring the company’s accelerating shift toward artificial intelligence and automation.
The latest cuts form part of a broader plan to eliminate 30,000 corporate roles, affecting teams across Amazon Web Services (AWS), retail operations, Prime Video, and human resources.
Layoffs Target Corporate Workforce
While the total number of job cuts is significant, the 30,000 roles represent less than 2% of Amazon’s total workforce of 1.58 million employees. However, they account for nearly 10% of the company’s corporate staff, as most Amazon employees work in fulfilment centres and warehouses. The layoffs come amid multiple internal restructurings, as Amazon works to ease operational pressure and realign its cost base.
Post-Pandemic Expansion Now Being Reversed
Amazon expanded aggressively during the pandemic, hiring rapidly across nearly all functions to meet surging consumer demand, manage supply chain disruptions, and scale logistics capacity.
As demand normalised and inefficiencies mounted, that expansion became increasingly costly. The company is now unwinding pandemic-era hiring, as margins tighten across its retail, cloud, and hardware businesses.
AI and Automation Drive Workforce Reduction
A major driver of the job cuts is Amazon’s deepening integration of AI and automation across its operations. Amazon already dominates global cloud infrastructure through AWS, and executives see artificial intelligence as a critical tool to streamline internal workflows and reduce long-term headcount.
In June, the company informed employees that AI adoption would likely shrink its corporate workforce over time, as automation takes over routine tasks and improves productivity across departments.
When Amazon cut 14,000 white-collar jobs in October, CEO Andy Jassy emphasised the need to eliminate excessive bureaucracy by reducing layers of management and simplifying decision-making.
External Pressures Add to Internal Restructuring
Beyond AI-driven efficiency, Amazon is also responding to macroeconomic headwinds, including:
- Rising interest rates
- Persistent inflation
- Weaker global consumer spending
These pressures have weighed on returns across Amazon’s retail, cloud, and hardware segments, forcing the company to prioritise cost discipline.
A Pattern of Repeated Layoffs
The latest cuts extend a multi-year trend. Between late 2022 and 2023, Amazon laid off approximately 27,000 corporate employees across major divisions, including AWS, advertising, devices, communications, and experimental ventures.
In early 2025, the company also made smaller reductions:
- Dozens of roles cut in communications and sustainability
- Around 100 jobs eliminated in the Devices & Services unit, including teams working on Alexa, Kindle, and hardware products
The full 30,000-role reduction now underway marks Amazon’s largest layoff cycle to date.
Robotics and AI Accelerate Operational Shift
Even as it reduces corporate staff, Amazon is increasing investment in robotics and automation within its warehouses to speed up packaging and delivery operations across its e-commerce business.
The move mirrors a broader industry trend. Major technology companies, including Meta Platforms and Microsoft, are also restructuring workforces as AI assistants and autonomous systems increasingly replace routine and even complex tasks.
AI Redefines the Tech Workforce
Amazon’s latest layoffs highlight a growing reality across the tech sector: AI scalability is enabling companies to do more with fewer people.
From administrative workflows to advanced coding and logistics optimisation, AI-driven efficiency is reshaping how global tech firms structure their workforce, often at the expense of traditional corporate roles.
