Amazon Announces Reduction of 16,000 Positions in Recent Workforce Restructuring

In a significant development for the tech industry, Amazon has announced plans to cut approximately 16,000 jobs, marking another wave of sizable layoffs. This news comes as part of a broader trend of workforce reductions within the tech sector.

Beth Galetti, a senior vice president at Amazon, shared this update on Wednesday through a blog post. Her announcement follows an earlier round of layoffs in October when the company let go of 14,000 employees.

According to Galetti, the impacted U.S.-based employees will have a 90-day window to seek new roles within the company. Should they be unable or unwilling to secure a new position, Amazon has committed to providing severance packages, outplacement assistance, and health insurance benefits.

“Despite these changes, our commitment to hiring and investing in key strategic areas remains firm,” Galetti emphasized, indicating that the company is still focused on growth in critical sectors.

This round of layoffs is Amazon’s most substantial since 2023, when the company reduced its workforce by 27,000 positions, highlighting the ongoing challenges and adjustments within the tech industry.

The layoffs are Amazon’s biggest since 2023, when the company cut 27,000 jobs.

Amazon’s workforce doubled during the COVID-19 pandemic as millions stayed home and boosted online spending. But in the following years, big tech and retail companies cut thousands of jobs to bring spending back in line.

Hiring has stagnated in the U.S. and in December, the country added a meager 50,000 jobs, nearly unchanged from a downwardly revised figure of 56,000 in November.

Labor data points to a reluctance by businesses to add workers even as economic growth has picked up. Many companies hired aggressively after the pandemic and no longer need to fill more jobs. Others have held back due to widespread uncertainty caused by President Donald Trump’s shifting tariff policies, elevated inflation, and the spread of artificial intelligence, which could alter or even replace some jobs.