Amazon has cut around 30,000 corporate jobs since late 2025, marking the largest workforce reduction in its history. The layoffs, concentrated in AWS, Alexa, Prime Video, and retail operations, reflect a restructuring strategy aimed at funding massive investments in AI and cloud infrastructure.
Amazon’s latest workforce reductions continue a trend that began in October 2025, when 14,000 roles were eliminated, followed by 16,000 in January 2026. Smaller rounds in May and July targeted Selling Partner Services and the artificial general intelligence (AGI) unit. While corporate staff have been most affected, Amazon’s warehouse and logistics workforce of about 1.5 million remains largely untouched.
The company’s restructuring comes despite strong revenue growth. Amazon reported a 21% increase in late 2025, yet chose to streamline operations and reallocate resources. Severance costs for the October 2025 layoffs alone reached $1.8 billion (R33.8 billion). The January 2026 cuts represented about 4.5% of Amazon’s corporate workforce.
Table: Amazon Layoffs 2025–2026
| Period | Roles Cut | Divisions Affected | Notes |
|---|---|---|---|
| Oct 2025 | ~14,000 | AWS, Alexa, Prime Video, retail | $1.8bn (R33.8bn) severance costs |
| Jan 2026 | ~16,000 | Corporate roles | 4.5% of corporate workforce |
| May 2026 | Not disclosed | Selling Partner Services | Marketplace support unit |
| Jul 2026 | Not disclosed | AGI unit | AI model customisation roles |
| Total | ~30,000 | Multiple | Largest reduction in Amazon’s history |
The layoffs highlight Amazon’s pivot towards automation and AI. Reports indicate AWS support teams, Alexa engineers, and Prime Video staff were among those affected, as the company shifts focus to AI-native products such as Rufus. Regional impacts were significant, with California losing nearly 4,900 jobs, Washington state about 2,600, and further cuts in Maryland and Virginia tied to Amazon Fresh store closures.
Despite the cuts, Amazon continues to expand in areas aligned with future growth. The company plans to invest $200 billion (R3.76 trillion) in 2026, primarily in AI and cloud infrastructure. Hiring is expected to resume in AI-focused roles, with about 11,000 new positions planned. This dual strategy of reducing corporate overhead while expanding technical capacity reflects broader trends across the technology sector, where firms are compressing costs in traditional divisions while funding capital-intensive AI projects.
The broader context of tech layoffs in 2026 shows similar patterns. Intel, Oracle, Verizon, and Meta have all announced significant reductions, often in middle management and support roles, while simultaneously increasing spending on AI infrastructure. Analysts note that these cuts are less about contraction and more about reallocation, as companies seek efficiency gains and redeploy resources to high-growth areas.
For Amazon, the restructuring underscores the challenge of balancing short-term workforce reductions with long-term investment in innovation. While the layoffs have raised concerns among employees and regulators, investors are watching closely to see whether the company’s aggressive AI spending translates into sustained profitability.