Amazon Announces Another 16,000 Corporate Layoffs, Total Cuts Reach 30,000
In a significant development for the tech industry, Amazon has confirmed it is eliminating another 16,000 corporate positions, exactly three months after announcing 14,000 job cuts on October 28. This latest round brings the combined total to 30,000 positions, marking the largest workforce reduction in Amazon's history. The previous record was set in 2023 when the company eliminated 27,000 jobs during post-pandemic restructuring.
Severance and Restructuring Details
Affected employees in the United States will receive 90 days to search for internal roles within the company before severance packages take effect. The layoffs are part of CEO Andy Jassy's broader strategic initiative to operate the $2 trillion company with the agility of what he describes as "the world's largest startup."
In a memo to staff, HR chief Beth Galetti explained that teams which had not completed their restructuring processes in October have now finalized those adjustments. Galetti assured employees that this pattern of large-scale layoffs will not become a recurring practice, but emphasized that ongoing evaluations and adjustments will continue in response to rapidly changing market conditions.
AI Investment Drives Workforce Changes
The substantial job cuts come despite Amazon reporting $21 billion in profit during the last quarter alone. Behind this apparent contradiction lies a massive strategic bet on artificial intelligence. Amazon is investing approximately $125 billion into data centers and infrastructure as it intensifies its competition with Microsoft and Google in the AI sector.
Jassy has been transparent about the implications of this technological shift, telling employees last year that AI-driven efficiency improvements would gradually reduce corporate staffing needs. The CEO has identified organizational challenges including too many management layers, excessive approval processes, and what he termed "pre-meetings for the pre-meetings" as areas requiring streamlining for greater operational speed.
Employee Morale and Additional Business Changes
These layoffs conclude a difficult period for Amazon's corporate workforce. Last year, Jassy implemented a mandatory five-day office return policy that generated significant internal resistance. The October layoffs created months of uncertainty about which positions would be affected next.
Some employees received an early indication of the latest cuts when calendar invitations labeled "Project Dawn" accidentally appeared on schedules before the official announcement. The layoffs coincided with other significant business changes, including the shutdown of all Amazon Go cashierless stores and Amazon Fresh grocery locations, as well as the discontinuation of the Amazon One palm-scanning payment system.
Future Workforce Trends and Financial Impact
Warehouse employees also face uncertainty, with reports indicating Amazon plans to automate more than 500,000 fulfillment center positions using robotic technology. The company's total workforce currently stands at 1.57 million, but this number appears poised for continued reduction.
Amazon is scheduled to report its fourth-quarter earnings on February 5, with Wall Street analysts projecting revenues exceeding $211 billion. The October layoffs alone cost the company $1.8 billion in severance expenses, highlighting the substantial financial impact of these workforce adjustments.
