Amazon announces layoffs impacting 16,000 employees. This marks the company’s second major round of job cuts in three months as artificial intelligence competition intensifies. The online retail giant streamlines operations, slashes red tape, and accelerates decision-making to remain competitive in the AI race.
These cuts target corporate jobs primarily, following 14,000 reductions in late October 2025. Affected US employees gain 90 days to seek internal roles, plus severance and benefits. Layoffs commenced January 28, 2026, after an internal memo leak.
CEO Andy Jassy envisions Amazon as the “world’s biggest startup,” adapting swiftly to AI shifts across tech. Senior Vice President of People Experience Beth Galetti emphasizes strengthening the company by trimming layers and boosting ownership, not routine layoffs. Resources redirect to AI data centers for generative AI competition.
These actions follow pandemic-era hiring reversals and AI efficiencies that diminish white-collar needs. Jassy previously warned that AI adoption shrinks the workforce. Big tech reshapes for AI dominance, sparking debates on automation’s job impact.
