Amazon to cut 16,000 jobs

Published: Wednesday, January 28, 2026 at 4:53 pm

Amazon Announces Further Job Cuts, Totaling 30,000 Since October

Seattle, WA - Amazon has announced a second round of significant job cuts, impacting 16,000 employees. This follows an earlier announcement in October, where the company revealed plans to reduce its corporate workforce by 14,000 workers. The combined cuts represent a reduction of nearly 10% of Amazon's workforce, which stood at approximately 350,000 people.

The layoffs are part of a broader company reorganization, according to a blog post by Beth Galetti, senior vice president of People Experience and Technology. The company aims to "strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy." Affected U.S.-based employees will have a 90-day window to find a new role within Amazon. Those unable to secure a new position or who choose not to will receive transition support, including severance pay, outplacement services, and health insurance benefits.

Amazon's CEO, Andy Jassy, has been focused on downsizing the workforce since the surge in e-commerce demand during the COVID-19 pandemic. Jassy has also expressed a desire to cultivate a company culture more akin to a "world's largest startup."

The company anticipates that cost-cutting measures will free up resources for investment in artificial intelligence and data centers. In June, Jassy indicated that AI advancements would likely lead to staff reductions in certain areas, while simultaneously creating opportunities in other job roles.

The recent job cuts coincide with other developments, including the closure of Amazon's Fresh and Go grocery stores, an initiative that did not achieve the company's expectations. Additionally, UPS announced it would cut 30,000 jobs as it reduces Amazon deliveries.

BNN's Perspective: While these job cuts are undoubtedly concerning for the affected employees, they also reflect the dynamic nature of the tech industry. Amazon's strategic shift towards AI and data centers suggests a focus on future growth areas. The company's commitment to providing transition support is a positive step, mitigating some of the negative impacts of these changes. However, the scale of the layoffs raises questions about the long-term stability of the e-commerce sector and the potential for broader economic implications.

Keywords: Amazon, layoffs, job cuts, workforce reduction, reorganization, Andy Jassy, Beth Galetti, artificial intelligence, data centers, severance pay, e-commerce, UPS

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