Amazon Slashes 16,000 Jobs in Second Major Layoff Wave Amid AI-Driven Restructuring

By Tech News Desk | January 28, 2026

Amazon announced on Wednesday that it is laying off 16,000 employees across the company, marking the second significant round of job cuts within three months.[1] This move comes as the tech giant intensifies its focus on artificial intelligence (AI) and streamlines operations to boost efficiency.

Reasons Behind the Layoffs

In a letter to employees, Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, explained that the layoffs aim at “reducing layers, increasing ownership, and removing bureaucracy.”[1] She highlighted that several teams had not completed their restructuring efforts from previous initiatives, necessitating this additional reduction.

The cuts follow a similar announcement in October 2025, when Amazon eliminated 14,000 positions.[1] At that time, the company reported having 1.57 million employees, with single-digit growth in the prior five quarters based on its Q3 2025 filings.[1] Amazon is scheduled to release its Q4 2025 earnings next week, which may provide further insights into its financial health.

“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.”
– Beth Galetti, SVP of People Experience and Technology[1]

AI’s Role in Workforce Transformation

The layoffs align with Amazon CEO Andy Jassy’s vision for a leaner organization powered by AI. In a memo last year, Jassy stated that AI advancements would mean “fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”[1] He predicted a reduction in the corporate workforce over the next few years as the company shifts toward AI-driven efficiencies.

Despite the broad cuts, Galetti emphasized that Amazon will continue hiring in strategic areas, signaling a pivot toward high-priority fields like AI, cloud computing, and customer innovation.[1] This selective recruitment underscores the company’s bet on AI to maintain its competitive edge in the intensifying tech landscape.

Employee Reactions and Internal Mishaps

The announcement has stirred concern among workers, compounded by an internal blunder. Amazon accidentally sent a meeting invite to numerous AWS employees referencing job cuts and a mysterious “Project Dawn” initiative, as reported by Business Insider. The invite was quickly canceled, but it left many confused and anxious.[1]

Employee sentiment on platforms like Blind and social media reflects a mix of frustration and resignation. Many cite the rapid pace of changes as evidence of deeper strategic shifts, with some speculating that AI tools are automating roles in software development, customer service, and operations.

Broader Context in Tech Layoffs

Amazon’s decision places it in the company of other tech giants navigating post-pandemic adjustments and AI disruptions. In 2025 alone, Meta, Google, and Microsoft announced thousands of layoffs, often framed around AI investments. Amazon’s e-commerce dominance has been challenged by slowing growth, rising costs, and competition from rivals like Walmart and Shopify.

Analysts point to macroeconomic factors, including inflation and interest rate hikes, as contributors to the cautious hiring environment. However, Amazon’s scale—with revenues exceeding $500 billion annually—positions it to weather the storm while reallocating resources to growth areas like AWS, which powers much of the world’s cloud infrastructure.

Recent Major Tech Layoffs

Company	Layoffs	Date	Reason
Amazon	16,000	Jan 2026	AI restructuring
Amazon	14,000	Oct 2025	Organizational efficiency
Meta	10,000	2025	AI and metaverse pivot

Future Outlook

While Galetti assured that large-scale layoffs are not a recurring pattern, she noted that teams will continue evaluating “ownership, speed, and capacity to invent for customers.”[1] Investors will watch closely for Q4 results, expected to reveal how AI initiatives are impacting profitability.

For affected employees, Amazon has promised severance packages, career transition support, and continued health benefits, though details vary by role and location. The layoffs span corporate, AWS, and retail divisions, hitting a workforce already thinned by prior reductions.

Implications for the Job Market

These cuts exacerbate a tough job market for tech professionals, with unemployment rates in the sector rising above 5% in key hubs like Seattle and San Francisco. Recruiters report a flood of Amazon resumes, particularly from mid-level managers and engineers whose roles overlap with AI capabilities.

Yet, opportunities persist in AI-specialized positions. Amazon’s aggressive hiring in machine learning and generative AI could offset some losses, creating a bifurcated market: displacement in legacy roles versus demand for cutting-edge skills.

As the AI battle intensifies between Amazon, Google, Microsoft, and startups, today’s announcement signals a pivotal moment. The e-commerce behemoth is betting big on automation to reclaim agility, but at the human cost of 16,000 livelihoods. The tech industry’s evolution continues, reshaping work in profound ways.