Amazon is undergoing significant job reductions, laying off about 16,000 employees. This represents the second large-scale reduction within a three-month period. The company is taking this step as part of its strategic effort to streamline organizational operations while prioritizing investments in artificial intelligence.
Why is Amazon cutting jobs now? These layoffs are part of organizational changes initiated back in October 2025, aimed at flattening the management structure, enhancing accountability, and eliminating unnecessary bureaucracy. Employees based in the United States will be provided a 90-day window to seek new job opportunities within the company. For those unable to secure a new position, severance packages, outplacement assistance, and health insurance will be offered. Support for international employees will depend on the specific requirements of their local regions.
These recent cuts follow an earlier announcement in October 2025 when Amazon eliminated 14,000 jobs. With these ongoing reductions, the total number of job losses at Amazon could approach 30,000 by mid-2026. Locations in India, especially tech hubs like Bengaluru, Hyderabad, and Chennai, stand to be significantly impacted, particularly within divisions such as AWS and Prime Video.
Will layoffs like these continue to happen? Leadership has reassured employees that these job cuts are not a regular occurrence while reiterating the company's commitment to evaluate operational strategies continuously in a rapidly changing environment.
Despite these cuts, Amazon plans to continue hiring in key areas crucial for its future growth. CEO Andy Jassy has expressed that improving organizational culture and decision-making is as vital as reducing costs. As Amazon pivots towards prioritizing artificial intelligence, it is joining a larger trend of technology companies adjusting their workforces to support AI-driven initiatives.
Additionally, Pinterest is taking a similar approach by reorganizing its workforce to facilitate AI adoption, cutting 15% of its staff while focusing on reinvestment in AI roles and products. This trend highlights a broader shift within the tech industry as companies strive to innovate and adapt to new technologies.