Amazon is reportedly preparing for its largest workforce reduction in its 30-year history, with plans to cut approximately 16,000 corporate jobs starting as early as next week.
This move, reported by Reuters on January 23, 2026, marks the second and final phase of a broader restructuring goal to eliminate 30,000 white-collar positions globally.
The Final Phase of a 30,000-Job Target
The upcoming layoffs follow a first wave in October 2025, during which the e-commerce giant let go of roughly 14,000 employees.
Insiders suggest that notifications for the remaining 16,000 roles could begin as soon as Tuesday, January 27.
This total reduction represents nearly 10% of Amazon’s corporate workforce, though it remains a small fraction of the company’s 1.58 million total employees, the majority of whom work in logistics and fulfillment.
Impacted Divisions at Amazon: High-Salary and Tech Roles
Unlike previous pandemic-era cuts that targeted warehouses, this round is expected to hit high-level corporate segments, including:
- Amazon Web Services (AWS): The cloud division, facing slower growth compared to rivals.
- People Experience and Technology (PXT): The internal HR organization, as hiring processes become automated.
- Retail and Prime Video: General corporate support and content administration.
Restructuring vs. AI Automation
While an internal memo in late 2025 described AI as “the most transformative technology since the internet,” CEO Andy Jassy has recently reframed the narrative.
During recent earnings calls, Jassy stated that the cuts are less about financial strain and more about “culture” and reducing “managerial bloat.”
He emphasized a push to flatten the organizational structure to help Amazon “operate like the world’s largest startup.”
However, industry analysts note that the heavy push toward AI agents and automated coding is undeniably reducing the company’s reliance on large administrative and support teams, allowing for deeper cuts in “legacy” roles while redirecting funds toward generative AI investments.
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