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Amazon announces layoffs to cut 16,000 jobs amid ‘rising competition over AI’

This is the second round of Amazon layoffs since 14,000 jobs were cut in October 2025, even as CEO Andy Jassy warned that AI will shrink the workforce.

Updated on: Jan 28, 2026, 19:04:34 IST
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Amazon.com Inc. has announced layoffs affecting as many as 16,000 corporate jobs, amid “rising competition over AI”.

Amazon CEO Andy Jassy. (Reuters)
Amazon CEO Andy Jassy. (Reuters)

The company will offer US-based employees 90 days to search for a new role internally, as well as severance and other transition support, Beth Galetti, the senior vice president of people experience and technology at Amazon, said in a blog post on Wednesday.

“Some of you might ask if this is the beginning of a new rhythm—where we announce broad reductions every few months. That's not our plan,” said Galetti said. “We’ve been working to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy.”

To be sure, this is the second round of Amazon layoffs since 14,000 jobs were cut in October 2025, as Chief Executive Officer Andy Jassy is determined to cut management layers and ease bureaucracy. Last year, he warned employees that AI will shrink the workforce as Amazon automates most of its operations.

Amazon employs a total of about 1.57 million people, most of whom are in the warehouse. The corporate workforce is about 350,000.

 
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