Amazon axes 16,000 jobs as it pushes AI and efficiency
CONNECTICUT – Amazon has announced the elimination of 16,000 corporate jobs, marking one of its largest workforce reductions in recent years. The move is part of a broader restructuring strategy aimed at streamlining operations and accelerating the company’s investment in artificial intelligence.
According to Amazon, the layoffs affect multiple corporate divisions, including administrative, retail, and technology teams. The company says the decision is tied to its long‑term plan to reduce bureaucracy, simplify management layers, and improve overall efficiency.
This latest round of cuts brings Amazon’s total job reductions to around 30,000 since late 2025, reflecting a significant shift in how the company allocates resources.
AI Takes Center Stage
Amazon leadership emphasized that the company is redirecting investment toward AI development, automation, and next‑generation digital tools. These technologies are expected to play a central role in Amazon’s future operations, from logistics to customer service.
CEO Andy Jassy has repeatedly highlighted AI as a “transformational priority” for the company’s next decade.
Retail Changes and Product Shutdowns
Alongside the job cuts, Amazon is also:
• Closing its remaining Amazon Fresh grocery stores
• Shutting down Amazon Go cashier‑less convenience stores
• Ending its Amazon One palm‑scan payment program
These closures reflect Amazon’s shift away from experimental retail projects and toward more profitable, scalable business units.
Amazon says employees impacted by the layoffs will receive severance packages, extended healthcare coverage, and job‑placement assistance. The company has not released a detailed breakdown of which regions or departments are most affected.
The restructuring signals Amazon’s intention to operate with a leaner corporate structure while doubling down on AI‑driven innovation. Analysts say the move positions the company to remain competitive as the global tech industry rapidly evolves.