Amazon cuts thousands of jobs amid AI push

Amazon is cutting 16,000 corporate jobs, announced on Wednesday, January 28, 2026, marking the second mass layoff in three months. This follows a previous reduction of 14,000 positions in October. The layoffs are part of a restructuring effort, with the company increasingly focusing on artificial intelligence. Affected departments include Prime Video, Amazon Web Services, and human resources. Amazon will provide transition support, including severance, to employees unable to find new roles within the company. The cuts coincide with the closure of over 70 Amazon Go and Amazon Fresh stores, some of which will be converted into Whole Foods Market locations.

Amazon is cutting approximately 16,000 corporate jobs, marking its second major layoff round in three months. The company announced the reductions, citing a shift towards using generative artificial intelligence and a restructuring of its workforce following pandemic-era expansion. According to a senior vice president, the aim is to reduce layers of management and increase efficiency. The specific business units and locations affected by these cuts were not disclosed. This follows a previous layoff of 14,000 employees in October, with US-based staff receiving 90 days to find internal roles and severance packages offered to those who are unsuccessful or choose not to pursue new positions within the company.

Amazon is laying off approximately 16,000 employees in its latest round of job cuts, announced Wednesday by senior vice president Beth Galetti. This follows a previous reduction of 14,000 workers in October. U.S.-based employees will have 90 days to find internal roles, with severance packages offered to those who are unsuccessful or choose not to pursue new positions. These layoffs are the largest since 2023, when Amazon cut 27,000 jobs. The company's workforce had doubled during the COVID-19 pandemic, but has since been reducing staff to align spending with current economic conditions. The broader trend of tech and retail companies cutting jobs reflects factors such as uncertainty caused by shifting tariff policies, inflation, and the potential impact of artificial intelligence.

Amazon inadvertently revealed a new round of global job cuts through an email sent in error to AWS employees. The email, signed by a senior vice-president, indicated that affected employees in the US, Canada, and Costa Rica had already been notified. This follows Amazon's announcement in October of 14,000 corporate role reductions as the company aims to reverse pandemic-era hiring and reduce costs. While Amazon has not confirmed the latest layoffs, reports suggest the cloud computing and stores units will be impacted. The news coincides with UPS announcing plans to cut up to 30,000 jobs, partially due to reducing low-value deliveries for Amazon, a major customer and growing competitor.

UPS announced plans on January 28, 2026, to eliminate up to 30,000 jobs as part of a cost-cutting initiative targeting $3 billion in savings by 2026. The job reductions, primarily through attrition and voluntary buyouts, aim to reduce the company's reliance on Amazon deliveries and focus on more profitable shipments. The company will also close 24 buildings in the first half of the year and evaluate further closures. This follows $3.5 billion in savings achieved in 2025 through similar measures, including reduced labor hours and building closures. The Teamsters union criticized the planned job cuts, emphasizing the value and contributions of its members.