Amazon will eliminate roughly 16,000 positions, marking one of the tech sector’s largest workforce reductions in recent years and the company’s most significant round of cuts since 2023.
The announcement came Wednesday from Beth Galetti, a senior vice president at the e-commerce giant, who detailed the plan in a corporate blog post. The move arrives just months after Amazon shed 14,000 workers in October, deepening a pattern of substantial layoffs across the technology industry.
Employees based in the United States will receive 90 days to pursue internal transfers, according to Galetti. Workers who cannot secure another position or choose to leave will get severance packages, job placement assistance, and continued health coverage. Meanwhile, Galetti noted the company plans to keep recruiting for roles tied to strategic priorities even as it restructures.
These cuts represent Amazon’s largest since eliminating 27,000 jobs two years ago. The company’s headcount exploded during the pandemic era when lockdowns drove millions of consumers toward online ordering. Once that surge faded, major technology and retail firms began aggressively trimming payrolls to align spending with slower growth.
Broader labor market signals point to stagnant hiring across the country. December’s economy added just 50,000 jobs, a figure barely changed from November’s downwardly revised 56,000. Employers appear hesitant to expand payrolls despite improving economic conditions. Many companies overhired during the post-pandemic boom and no longer need additional staff. Others face uncertainty from shifting tariff policies, elevated inflation, and the rapid spread of artificial intelligence tools that could transform or replace certain roles.
Amazon has not disclosed which divisions will absorb the heaviest losses. The full impact on its global workforce remains unclear as the restructuring unfolds.
