Amazon Cuts 16,000 Corporate Roles in Major Shift Toward AI and Efficiency

By Linet Amuli - Reporter

Kenya, January 28, 2026 - Amazon has confirmed the elimination of 16,000 corporate positions, bringing the total number of job cuts since October to roughly 30,000. The company indicated that additional reductions could still follow as it continues to reshape its operations.

The latest layoffs align with CEO Andy Jassy’s broader strategy to streamline the organization by cutting back on bureaucracy and shutting down business units that are not delivering strong results. Reuters had reported earlier that Amazon was preparing for a second round of cuts as part of this restructuring effort.

Earlier this week, Amazon also announced it would shut down its remaining physical Fresh grocery stores and Go convenience outlets. In addition, the company said it would discontinue Amazon One, its palm-based biometric payment system, after years of development and testing.

While the total number of layoffs represents a small fraction of Amazon’s global workforce of about 1.58 million, most of whom work in warehouses and fulfillment centers, the cuts account for nearly 10% of its corporate staff. This marks the largest workforce reduction in Amazon’s history, surpassing the layoffs carried out between late 2022 and early 2023.

According to Amazon’s Chief Human Resources Officer, Beth Galetti, the job cuts are intended to strengthen the company by simplifying management structures, increasing accountability, and removing unnecessary layers. She noted that some teams may continue to make adjustments as the company evaluates its needs.

This is the second major round of layoffs in just three months. In October, Amazon cut approximately 14,000 roles, citing the growing role of artificial intelligence and shifts in corporate culture. The company has also acknowledged that it hired too aggressively during the COVID-19 pandemic, when online shopping demand surged.

Galetti sought to reassure employees that repeated rounds of layoffs are not the company’s long-term approach, though she did not rule out further changes.

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Internal concerns were heightened this week after some Amazon Web Services employees mistakenly received an email referencing the layoffs as “Project Dawn.” Reports suggest that staff across several divisions including AWS, Alexa, Prime Video, advertising, devices, and last-mile delivery—have been affected.

The layoffs highlight the accelerating impact of artificial intelligence on corporate work. Advances in AI tools are enabling companies to automate tasks ranging from basic administrative work to advanced technical functions, reducing the need for large corporate teams.

Jassy has previously stated that wider adoption of AI would lead to greater automation and, as a result, fewer corporate roles. Industry leaders at the World Economic Forum recently echoed this view, noting that while AI will eliminate some jobs, it will also create new ones, though some executives cautioned that AI is sometimes used to justify planned workforce reductions.

Amazon is not alone in restructuring. Several major companies, including Meta and Microsoft, have announced layoffs as they adjust after pandemic-era hiring surges.

Meanwhile, Amazon continues to invest heavily in automation and robotics within its warehouses to improve efficiency, reduce costs, and speed up deliveries.