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Amazon Announces Layoffs Affecting 16,000 Corporate Employees

Written by: Team Angel OneUpdated on: 29 Jan 2026, 6:18 pm IST
Amazon to cut 16,000 corporate jobs globally as part of restructuring after pandemic hiring and increased use of AI and automation.
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Amazon, on January 28, 2026, announced that it would eliminate around 16,000 corporate roles worldwide, marking the second major round of layoffs in 3 months, as per Reuters.  

The company had announced about 14,000 job cuts in October, taking the total planned reductions since then to roughly 30,000. Amazon has said it overhired during the pandemic as online shopping demand surged. 

Scale of Impact on Workforce 

As of 30 September, Amazon employed about 1.57 million people globally, with most working in warehouses and fulfilment centres. Its corporate workforce is estimated at around 350,000 employees.  

The latest cuts represent about 4.6% of that segment and nearly 10% when combined with recent reductions, surpassing the 27,000 jobs cut between late 2022 and early 2023. 

Employee Support and Internal Processes 

Beth Galetti, Senior Vice President of People Experience and Technology, said most US-based employees affected would receive around 90 days to seek internal roles, with severance pay, health benefits and outplacement services available for those who leave. 

Galetti said the company is reducing management layers, increasing ownership and removing bureaucracy to speed up decision-making. Some teams may make further adjustments. 

Automation, AI and Operational Changes 

Chief Executive Andy Jassy has said artificial intelligence is likely to reduce corporate headcount over time as tasks become automated.  

Amazon has also been investing in robotics at warehouses to speed up packaging and deliveries and reduce reliance on manual labour. AI tools are increasingly used for administrative tasks and software development. 

Business Exits and Sector Context 

The job cuts coincide with Amazon’s decision to close its remaining Fresh grocery stores and Go markets and discontinue its Amazon One biometric payment system.  

Employees across Amazon Web Services, Alexa, Prime Video, devices, advertising, Kindle and supply chain functions have been affected.  

Other technology companies, including Meta and Microsoft, have also been restructuring after pandemic-era hiring. 

Read More: Amazon Inadvertently Sends Organisational Change Notice to Cloud Staff as Layoffs Expected! 

Conclusion 

The reductions come amid restructuring across the technology sector after rapid hiring during the pandemic. Amazon is due to publish its quarterly results on 5 February. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Jan 29, 2026, 12:48 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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