Amazon slashes another 16,000 jobs
Amazon said Wednesday it was slashing another 16,000 jobs across the company in an ongoing bid to restructure the sprawling trillion-dollar firm.
‘The reductions we are making today will impact approximately 16,000 roles across Amazon, and we’re again working hard to support everyone whose role is impacted,’ Beth Galetti, Amazon’s senior vice president of people experience and technology, said in a memo to employees.
‘That starts with offering most US-based employees 90 days to look for a new role internally,’ she said. Amazon will ‘continue hiring and investing in strategic areas and functions that are critical to our future.’
Galetti said the cuts would ‘strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy.’
In October, Amazon cut 14,000 jobs primarily at the corporate level. At the time, Galetti cited artificial intelligence as being the “most transformative technology we’ve seen since the internet.”
Amazon has 1.55 million employees worldwide, the company said in a filing last year.
It said Tuesday that it would close some of its Amazon Go and Amazon Fresh physical stores, planning to convert some into Whole Foods Market stores.
While AI was not explicitly cited in Wednesday’s note to Amazon workers, the cuts come as workers nationwide brace for the impact of artificial intelligence in a sluggish labor market.
Companies have started citing ‘efficiency’ as they pursue the implementation of AI.
On Monday, Goldman Sachs CEO David Solomon said that his firm’s headcount would be ‘more constrained in 2026’ as the company sees ‘opportunities for efficiency and we try to deploy those.’
On Tuesday, Pinterest said it would cut 15% of its workforce as it pivoted ‘resources to AI-focused roles and teams that drive AI adoption and execution.’
Last year, Microsoft said it was eliminating 9,000 jobs to improve efficiency. Target also cut 1,800 corporate jobs to reduce ‘complexity.’ Instagram and Facebook owner Meta Platforms also reduced its workforce by around 600 jobs as it shifted toward artificial intelligence.
At the same time, hiring nationwide is slowing and inflation remains elevated.
After three months of contraction last year, the U.S. economy added only 56,000 jobs in November and just 50,000 in December. Meanwhile, inflation remains at 2.7%, well above the Federal Reserve’s target of 2%.
