SEATTLE (dpa-AFX) - Tech and e-commerce major Amazon.com, Inc. announced its plan to cut approximately 16,000 jobs worldwide as part of additional organizational changes.
Beth Galetti, Senior Vice President of People Experience and Technology at Amazon confirmed the decision, which was shared with Amazon employees earlier in the day.
The firm is offering most US-based employees 90 days to look for a new role internally. The company noted that timing will vary internationally based on local and country level requirements.
Further, transition support will be provided for those who are unable to find a new role at Amazon or who choose not to look for one. These include severance pay, outplacement services, health insurance benefits, and more.
While doing the reduction, the firm will also continue hiring and investing in strategic areas and functions that are critical to its future, it said.
The company in October had announced plans to strengthen its organization by reducing layers, increasing ownership, and removing bureaucracy. The company then cut around 14,000 office jobs.
Galetti noted that many teams finalized their organizational changes then itself, but other teams were yet to complete that work.
Galetti now said, 'Some of you might ask if this is the beginning of a new rhythm - where we announce broad reductions every few months. That's not our plan. But just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate. That's never been more important than it is today in a world that's changing faster than ever.'
Reuters reported last week that the company was planning another round of job cuts this week as part of its plan to reduce about 30,000 corporate jobs from its around 1.58 million total employees. The job cuts were said to affect teams across Amazon Web Services or AWS, retail, Prime Video, and human resources.
Earlier, Amazon linked the October layoffs to the rise of artificial intelligence, arguing that AI is helping companies work faster and more efficiently. However, CEO Andy Jassy later said the cuts were not mainly about finances or AI, but about reducing bureaucracy and improving company culture.
Jassy also hinted during early 2025 that Amazon's corporate workforce is likely to shrink over time as AI helps automate routine work. Many companies are now using AI to write software code and handle repetitive tasks to cut costs.
In pre-market activity, Amazon shares were gaining around 0.7 percent to trade at $246.38, after closing Tuesday's regular trading 2.6 percent higher, at $244.68.
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