Amazon reduces workforce by thousands as it shifts focus to artificial intelligence

Amazon Announces Second Wave of Layoffs, Cuts 16,000 Jobs

Amazon has confirmed that it will be cutting 16,000 jobs, the second mass layoffs at the e-commerce giant in three months. The company is restructuring and leaning on artificial intelligence to achieve efficiency gains.

The layoffs are expected to affect employees working in Prime Video, Amazon Web Services, and the human resources department, according to Reuters. Amazon has confirmed that all the cuts will be corporate-level positions.

In a memo shared with Al Jazeera, Amazon stated that workers impacted by the cuts will have a 90-day window to find a new role within the company. Those who are unable to find a new position or choose not to look for one will receive transition support, including severance pay, outplacement services, health insurance benefits, and more.

This announcement comes as part of Amazon’s broader restructuring effort, which includes closing its brick-and-mortar Amazon Go and Amazon Fresh grocery stores. Some physical stores will be converted into Whole Foods Market locations. The company has also increased investment in AI, with CEO Andy Jassy stating that this will reduce the total corporate workforce as efficiency gains are achieved.

The layoffs follow a similar trend seen in other tech companies, including Pinterest and Autodesk, which have also cut jobs due to increased investment in AI. According to Layoffs.fyi, more than 123,000 tech workers lost their jobs in 2025 alone.

Source: Al Jazeera