Amazon announced on Wednesday its decision to cut approximately 16,000 corporate jobs, marking its second significant wave of layoffs since October of last year. This move is part of a broader strategy aimed at streamlining the organization by reducing hierarchy, increasing ownership among employees, and eliminating bureaucratic obstacles. The company is also emphasizing a substantial commitment to investing in artificial intelligence.
The current layoffs follow a previous round in October, when Amazon reduced its corporate workforce by 14,000 employees. During those layoffs, the company hinted at a prolonged effort to identify further opportunities for organizational scaling, suggesting that the restructuring could continue into 2026.
Beth Galetti, Amazon’s senior vice president of people experience and technology, acknowledged that while more layoffs could occur in the future, the company does not intend to establish a cyclical pattern of frequent job cuts. “That’s not our plan,” Galetti stated. She emphasized that every team will consistently assess their responsibilities, performance, and capacity to innovate for customers, making necessary adjustments as circumstances evolve.
In a recent mishap, some employees within Amazon’s cloud division received an email discussing “organizational changes” prematurely, which referenced a previous announcement from Galetti about the layoffs.
As these changes unfold, Amazon appears to be positioning itself for future growth by focusing on agility and technological advancement, particularly in the AI sector. This strategy may not only enhance its operational efficiency but could also create new opportunities for innovation and job creation over time.