Thousands of Amazon jobs could disappear as AI quietly reshapes the company

Tech and e-commerce giant Amazon is planning to cut thousands of jobs as part of a broader plan to reduce its corporate workforce by 10%, Reuters reported. The company in October made the initial announcement before kicking off the first round of layoffs, and now the second wave is set to hit workers next week, according to the two anonymous sources who know the matter, cited by the publication.

Last year, Amazon announced it would cut 14,000 jobs as part of its plan to streamline processes and reduce bureaucracy by eliminating unnecessary layers. While the company stated that it aims to operate as the “largest startup in the world,” reports speculated that the layoffs were partly tied to the adoption of Artificial Intelligence. This time, the total is expected to be the same, and the layoffs could begin as soon as Tuesday, in the next week, per Reuters. The sources told the publication that the company’s Amazon Web Services, retail, Prime Video, and human resources, which are known as People Experience and Technology units, are slated to be affected. They further cautioned that the details of the plans could change. 

Earlier, the October job cuts were linked to AI after the company sent an internal letter talking about the tech adoption. “This generation of AI is the most transformative technology we’ve seen since the internet, and it’s enabling companies to innovate much faster than ever before,” the letter mentioned, Reuters previously reported. The company also showcased its latest AI models during its annual AWS cloud computing conference in December.

While the company’s CEO, Andy Jassy, previously talked about the reduction in the corporate workforce due to increased efficiency stemming from the use of AI, later in the third quarter earnings call, Jassy reportedly stated that the company was correcting some of the over-hiring practices of the past.  “You end up with a lot more people than what you had before, and you end up with a lot more layers," he said, as per the publication. The company plans to reportedly cut a total of 30,000 jobs from its 1.58 million workforce, and the corporate wings are set to take the brunt of it.

This would mark the largest layoff in Amazon’s history, after it cut a total of 27,000 jobs in 2022. In its October internal memo, the company told employees that those affected by the layoffs will stay on the payroll for three months as they look for opportunities within the company or outside. "We’re working hard to support everyone whose role is impacted, including offering most employees 90 days to look for a new role internally (the timing will vary some based on local laws), and our recruiting teams will prioritize internal candidates to help as many people as possible find new roles within Amazon," the message read, and that 90-day window will expire on Monday. The development comes amid a weakening job market, which had been dubbed “low-hire, low-fire”. However, with more corporations increasingly using AI, the market conditions don’t seem to be improving. As per a Business Insider report, over 100 companies, including Nike, FedEx, Verizon, and more, announced plans of layoffs at the start of 2026. 

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