In a significant move to streamline its corporate structure, Amazon officially announced a new round of 16,000 global job cuts on Wednesday, January 28, 2026.
This marks the company’s second major wave of layoffs in just three months, following the 14,000 roles eliminated in October 2025. Together, these reductions bring Amazon’s total workforce reduction to 30,000 employees—the largest in its three-decade history.
1. The “Project Dawn” Restructuring
The latest cuts were confirmed by Beth Galetti, Amazon’s Senior VP of People Experience and Technology, in an official blog post. Internal memos refer to the initiative as “Project Dawn.”
- Targeting Bureaucracy: CEO Andy Jassy has been vocal about wanting Amazon to operate like the “world’s largest startup.” The cuts are designed to remove management layers that slowed decision-making during the company’s rapid pandemic-era expansion.
- Corporate Focus: The layoffs represent approximately 4.6% of Amazon’s 350,000 corporate staff. Notably, frontline warehouse and fulfillment center workers (who make up the bulk of the 1.5 million global employees) are not affected.
2. Impacted Divisions
While the layoffs are global, they are heavily concentrated in high-tech and white-collar sectors of the business:
- Amazon Web Services (AWS): The cloud division is undergoing significant changes to realign with “Applied AI” goals.
- Retail & Devices: Teams managing e-commerce operations and hardware are seeing further consolidation.
- Prime Video & HR: Media and internal support functions are also witnessing headcount reductions.
- Beijing Office: Unconfirmed reports suggest the Beijing headquarters was particularly hard hit, with some teams facing up to 50% staff reductions.
3. The AI Pivot: $125 Billion Investment
The job cuts come despite Amazon reporting a 40% jump in profits (roughly $21 billion) last quarter. The saved capital is being aggressively reallocated into Artificial Intelligence.
- Infrastructure Race: Amazon is projected to spend a record $125 billion on capex in 2026, primarily building data centers to catch up with Microsoft and Google.
- Automation: Jassy previously told employees that AI-driven efficiency gains would naturally shrink the corporate workforce over time as routine administrative and coding tasks become automated.
4. Support for Affected Employees
Amazon has outlined a transition plan for those impacted by the January 28 announcement:
- 90-Day Search Period: U.S.-based employees will have three months to apply for internal roles before their tenure officially ends.
- Severance & Benefits: Those unable to find new roles will receive severance pay, health insurance continuation, and outplacement support.
- International Variation: Timelines and packages for workers in India, the UK, and Europe will vary based on local labor laws.
Conclusion: A Strategic Shift, Not a Crisis
Wall Street has largely viewed the 16,000 job cuts as a “strategic reallocation” rather than a sign of financial trouble. By shutting down experimental retail concepts like Amazon Go and Fresh stores and trimming management bloat, Amazon is attempting to protect its profit margins while funding its most expensive infrastructure build-out to date.
