Amazon Announces 16,000 Corporate Job Cuts in Latest AI-Driven Restructuring

Amazon has initiated a major corporate restructuring, announcing plans to eliminate approximately 16,000 jobs globally. This significant workforce reduction, primarily affecting corporate, technology, and project management roles, marks the latest phase in the tech giant's ongoing efforts to streamline operations and improve efficiency.

Company leadership has stated the decision is a strategic move to reduce costs, remove organisational redundancy, and reallocate resources toward its highest-priority investments. A central driver of this shift is a heightened focus on artificial intelligence. Amazon plans to channel savings and talent toward accelerating its development and integration of generative AI and machine learning technologies across its core businesses, including e-commerce, Amazon Web Services (AWS), and logistics.

The layoffs reflect a post-pandemic recalibration for Amazon, which expanded rapidly during earlier growth cycles, and a broader industry trend where major tech firms are restructuring to prioritise AI. While impacting a small percentage of Amazon's total global workforce, the cuts represent a substantial corporate downsizing. The company has confirmed it will provide affected employees with severance packages, transitional health benefits, and job placement support. This restructuring underscores the transformative impact of AI on corporate strategy and workforce planning within the technology sector.