Amazon Slashes 16,000 Jobs in Historic Layoff Wave Amid Tech Overhaul
February 1, 2026
Amazon has announced plans to lay off approximately 16,000 corporate employees, marking the second major round of job cuts in recent months and pushing the e-commerce giant toward its largest workforce reduction in history.[1][2]
This latest wave follows 14,000 layoffs in October, bringing total cuts to around 30,000 roles—roughly 9-10% of Amazon’s corporate workforce of about 350,000.[1][2] The reductions span key areas including Amazon Web Services (AWS), retail, human resources, Alexa, Bedrock, Redshift, ProServe consulting, Prime subscriptions, and last-mile delivery teams.[2][4]
Organizational Restructuring, Not AI-Driven
Beth Galetti, Amazon’s senior vice president of people experience and technology, detailed the changes in an internal memo, emphasizing efforts to “strengthen” the organization by “reducing layers, increasing ownership, and removing bureaucracy.”[1] She stressed that these moves aim for a leaner structure to “move as quickly as possible,” echoing comments from October where she described AI as the “most transformative technology we’ve seen since the internet.”[1]
Amazon has repeatedly clarified that the layoffs are not primarily driven by AI or financial pressures. CEO Andy Jassy has framed them as addressing cultural issues from rapid pandemic-era expansion, including excessive management layers and slowed decision-making.[2] The company insists it will continue hiring in other areas and has no plans for “broad reductions every few months.”[1]
Support for Affected Workers
To soften the blow, Amazon is offering most U.S.-based employees 90 days to seek internal roles. Those who don’t transition will receive severance pay, outplacement services, health insurance benefits, and additional support.[2][3] Galetti noted in her memo: “Changes like this are hard on everyone. These decisions are difficult and are made thoughtfully as we position our organization and AWS for future success.”[2]
Regional Impact: 870 Jobs Cut in New Jersey
The layoffs have a notable footprint in New Jersey, where a WARN notice reveals 871 jobs affected across multiple counties: Bergen (417), Passaic (240), Monmouth (141), Hudson (44), and statewide (29).[3] This comes amid Amazon’s decision to shutter Amazon Fresh supermarkets and Amazon Go stores nationwide, including sites in Paramus, Lodi, Eatontown, and Woodland Park.[3]
Despite the cuts, Amazon highlights its economic contributions to the state, having invested $34 billion and added $35.1 billion to New Jersey’s GDP over the past 13 years while employing around 46,000 people as of 2023.[3]
Broader Tech Industry Context
Amazon’s moves reflect a continuing trend in Big Tech, where companies like Microsoft, Meta, and Verizon have also trimmed staff amid AI advancements and post-pandemic adjustments.[1] Experts attribute the shifts to reallocating resources toward data, automation, and analytics in the AI race. Rutgers Business School’s Zeki Pagda noted, “Amazon cannot easily retrain a workforce built for manual logistics or legacy retail systems into one that builds generative AI agents.”[1]
Peter Fedoročko, CTO of GoodData, described the layoffs as emblematic of overexpansion during cheap capital eras colliding with AI-driven efficiency.[2] An internal Amazon employee even used the company’s AI tool, Pippin, to analyze Slack conversations and compile a list of potentially affected teams—though Amazon has not verified it, and the list may include inaccuracies.[4]
Amazon’s Future Focus
With over 1.5 million global employees, the corporate cuts represent a small fraction of Amazon’s total headcount but signal a strategic pivot.[4] The company plans to leverage generative AI in some capacities, though not as the main layoff driver, while right-sizing after explosive growth.[3]
As tech firms navigate economic headwinds and technological disruption, Amazon’s aggressive restructuring underscores the high stakes in maintaining agility. Employees and observers alike await how these changes will reshape the retail and cloud computing behemoth.