Amazon Slashes 16,000 Jobs in Latest Restructuring Wave: Echoes of Past Layoffs Spark Investor Concerns
Amazon announced sweeping organizational changes on January 28, 2026, resulting in the elimination of approximately 16,000 roles across its global workforce, marking one of the largest layoff rounds in the company’s recent history.[3] This move, targeting primarily white-collar corporate employees, represents about 1% of Amazon’s 1.57 million employees and has drawn comparisons to previous downsizing efforts amid ongoing efforts to streamline operations.[1]
Details of the Layoffs and Affected Regions
The cuts are part of a broader initiative to reduce layers of management, boost ownership, and eliminate bureaucracy, as outlined in an internal memo from Beth Galetti, Amazon’s senior vice president of people experience and technology.[3] Unlike prior layoffs that heavily impacted U.S.-based staff, this round is reportedly focusing on operations in India, affecting a significant portion of the company’s roughly 350,000 white-collar workers.[1]
In the United States, New Jersey has been notably hit, with 871 jobs lost across multiple counties. A WARN notice filed with the state Department of Labor & Workforce Development detailed the breakdown: 417 positions in Bergen County, 240 in Passaic, 141 in Monmouth, 44 in Hudson, and 29 statewide.[2] These cuts coincide with Amazon’s decision to shutter its Amazon Fresh supermarkets and Amazon Go convenience stores nationwide, including locations in Paramus, Lodi, Eatontown, and Woodland Park in New Jersey.[2]
Internally, an Amazon employee leveraged the company’s AI tool, Pippin, to analyze Slack conversations and compile a list of potentially affected teams, including AWS, Alexa, Bedrock, Redshift, ProServe, Prime, and the last-mile Delivery Experience team.[4] While Amazon has not officially confirmed this list, it underscores the use of AI in navigating the layoffs’ scope. The employee cautioned that the AI-generated information might not be entirely accurate.[4]
Support for Affected Employees and Company Rationale
Amazon emphasized support for those impacted, offering most U.S.-based employees 90 days to seek internal roles, followed by severance pay, outplacement services, health insurance benefits, and more for those who depart.[2][3] Internationally, support varies by local requirements.[3]
The company framed these changes as a continuation of October 2025 adjustments, not a recurring pattern, but affirmed that teams will continually assess capacity for innovation.[3] Reports suggest generative AI is playing a role in replacing some corporate functions, alongside efforts to normalize workforce levels post-pandemic hiring surges.[2] This follows 14,000 cuts in October 2025 and 27,000 during the 2022-2023 restructuring, with speculation of up to 30,000 more losses by mid-2026.[1]
Market Reaction and Historical Context
Amazon’s stock (AMZN) dipped 0.42% on Monday amid the news, though it remains up 3.18% year-to-date and 1.59% over the past 12 months.[1] Trading volume was low at 2 million shares against a three-month average of 35.25 million.[1] Wall Street maintains a Strong Buy consensus, with 46 Buy ratings and one Hold, targeting $295.05—a potential 23.51% upside.[1]
These layoffs echo patterns seen in Big Tech since 2022, when Amazon, Meta, Google, and others reduced headcounts after explosive pandemic-era growth. Last year, Amazon cut about 5% of staff at its Newark-based Audible unit.[2] Despite the reductions, Amazon continues investing: $34 billion in New Jersey since inception, contributing $35.1 billion to the state’s GDP over 13 years, and employing around 46,000 there as of 2023.[2]
Future Outlook and Strategic Shifts
Amazon insists these are not the start of quarterly cuts but targeted optimizations to fuel growth in AI, cloud computing, and e-commerce.[1][3] Recent innovations include billions in education and infrastructure via Amazon Future Ready, an agentic Health AI assistant from One Medical, Whole Foods’ new Amazon-integrated store format, and an enhanced AI shopping assistant.[3]
Critics, however, see parallels to past cycles, with the CNN-referenced title “Amazon’s layoffs are staggering. We’ve seen this before” capturing investor wariness.[user query] As Amazon navigates AI-driven efficiencies, the balance between cost-cutting and innovation will define its trajectory in a competitive landscape.
The tech giant’s moves reflect broader industry trends toward leaner operations amid economic pressures and technological disruption. Employees and analysts alike await clarity on further impacts, but Amazon’s history suggests resilience amid transformation.