Amazon Announces 16,000 Job Cuts Amid Rising AI Competition
Amazon.com Inc. has announced a fresh round of layoffs that could affect up to 16,000 corporate employees worldwide. The move comes as competition in artificial intelligence intensifies across the global tech industry. According to the company, the decision aims to streamline operations and improve efficiency. This marks Amazon’s second major workforce reduction in recent months, following the elimination of 14,000 jobs in October 2025. The announcement highlights how rapid advances in AI continue to reshape the company’s long-term strategy.
Employees Offered Internal Transfers and Severance
Meanwhile, Amazon has outlined transition support for affected US-based employees. Beth Galetti, senior vice president of people experience and technology, said workers will receive 90 days to apply for other roles within the company. Additionally, Amazon will provide severance packages and other forms of assistance. However, Galetti clarified that the company does not plan to announce large-scale layoffs every few months. Instead, Amazon aims to strengthen its structure by reducing management layers, increasing ownership, and cutting internal bureaucracy.
Andy Jassy Pushes Leaner Corporate Structure
To be sure, the latest layoffs reflect CEO Andy Jassy’s ongoing effort to simplify Amazon’s corporate hierarchy. Over the past year, Jassy has repeatedly stressed the need to reduce excess layers of management. As a result, Amazon has accelerated its focus on automation and efficiency. Last year, Jassy also warned employees that artificial intelligence would eventually shrink the workforce. He noted that as AI tools handle more tasks, the company will require fewer people in certain roles, particularly within corporate teams.
Workforce Size Remains Massive Despite Cuts
However, Amazon continues to employ a vast global workforce despite the reductions. The company currently has about 1.57 million employees worldwide, most of whom work in warehouses and logistics operations. Its corporate workforce stands at roughly 350,000 employees. Therefore, while the layoffs represent a significant shift for white-collar roles, they account for a relatively small portion of Amazon’s total staff. Even so, the move underscores how major tech firms increasingly rely on AI-driven automation to stay competitive in a rapidly changing market.
