SEATTLE, United States — Amazon has announced plans to lay off about 16,000 corporate employees worldwide as part of a major organisational restructuring aimed at cutting bureaucracy and accelerating the adoption of artificial intelligence across its operations.
In an internal message sent to staff on January 28, Amazon Chief Executive Officer Andy Jassy said the cuts would affect teams that had not completed earlier restructuring efforts announced in late 2024.
“I want to let you know that we’re making additional organisational changes across Amazon that will impact some of our teammates,” Jassy said. “I recognise this is difficult news, which is why I’m sharing what’s happening and why.”
The layoffs are expected to impact roughly 16,000 corporate roles, adding to a wave of job reductions that have swept through the technology sector as companies recalibrate costs and retool operations around artificial intelligence.
Push to flatten management and embrace AI
Amazon said the restructuring is intended to streamline management layers, increase individual ownership, and remove internal processes that slow decision-making.
“We’ve been working to strengthen our organisation by reducing layers, increasing ownership, and removing bureaucracy,” Jassy said. “While many teams finalised their organisational changes in October, other teams did not complete that work until now.”
The company framed the job cuts as part of a long-term strategy to improve efficiency rather than a response to immediate financial pressure. Amazon has continued to post strong revenues, driven largely by its cloud computing unit, Amazon Web Services, and advertising business.
Part of a wider Big Tech trend
Amazon’s decision mirrors a wider trend across the technology and logistics sectors. In October 2025, global shipping firm UPS announced plans to lay off 34,000 workers as it reorganised its operations. Pinterest has also said it would cut about 15pc of its workforce as part of its restructuring.
Across Silicon Valley, firms are reassessing staffing models as generative AI tools increasingly replace tasks once performed by human workers, particularly in corporate, administrative, and customer support roles.
Despite the layoffs, Amazon said it would continue hiring in areas it considers critical to its future growth.
“While we’re making these changes, we’ll also continue hiring and investing in strategic areas and functions that are critical to our future,” Jassy said. “There’s a significant opportunity ahead in every one of our businesses.”
Support for affected workers
Amazon said it would provide transition support for employees whose roles are eliminated. In the United States, most affected staff will be given up to 90 days to seek alternative roles within the company, though timelines will vary internationally depending on local labour laws.
“For teammates who are unable to find a new role at Amazon or who choose not to look for one, we’ll provide transition support, including severance pay, outplacement services, health insurance benefits where applicable, and more,” Jassy said.
For Amazon, the restructuring underscores a strategic bet that artificial intelligence and leaner corporate structures will drive its next phase of growth — even as thousands of workers face uncertainty about their future.
