Amazon announced a second wave of corporate layoffs, eliminating 16,000 positions worldwide and bringing the cumulative total of planned cuts since October 2025 to roughly 30,000—an unprecedented scale for the company.
The layoffs target a broad cross‑section of Amazon’s business, including Amazon Web Services, retail, Prime Video, and the People Experience and Technology unit. The 16,000 jobs represent about 4.5 % of Amazon’s corporate workforce and roughly 1 % of its total 1.578 million‑person workforce. U.S. employees are offered a 90‑day window to seek internal roles; those who do not find a new position will receive severance, outplacement services, and continued health‑insurance benefits.
Amazon frames the restructuring as a way to streamline operations and accelerate investment in artificial intelligence and cloud infrastructure. CEO Andy Jassy has said that AI will reduce the need for a large corporate workforce, while SVP Beth Galetti emphasized that the cuts will “strengthen the organization by reducing layers, increasing ownership, and removing bureaucracy.”
Amazon’s Q3 2025 earnings beat expectations, with earnings per share of $0.21 versus consensus $0.17—a 24 % beat—driven by robust performance in AWS and advertising. Revenue of $180.17 billion also exceeded estimates, reflecting strong demand for cloud services and digital advertising.
Analysts remain optimistic about Amazon’s high‑margin growth engines, citing the company’s ability to scale AI‑driven services. The layoffs are viewed as a cost‑control measure that frees resources for high‑margin AI and cloud initiatives, while Amazon continues to close physical retail stores such as Fresh and Go and discontinue Amazon One.
The restructuring signals Amazon’s commitment to leaner operations and a strategic shift toward high‑margin, high‑growth segments. While the layoffs may temporarily affect employee morale, the company expects the changes to support long‑term growth in AI and cloud services.
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