Reports indicate that Amazon is preparing for a second major round of corporate layoffs, with approximately 14,000 to 16,000 additional roles expected to be cut starting next week, specifically around Tuesday, January 27, 2026.
This wave is part of a broader restructuring goal announced in late 2025 to eliminate roughly 30,000 corporate positions by mid-2026. The first round, which saw about 14,000 employees depart, concluded in October 2025.
Key Details of the 2026 Layoffs
- Timeline: Notifications are expected to begin as early as Tuesday, January 27. This follows the expiration of a 90-day transition period for those affected by the October cuts, which officially ends on Monday, January 26.
- Total Impact: If the reported 16,000 roles are eliminated, the total job losses for this cycle will reach 30,000—the largest workforce reduction in Amazon’s 30-year history.
- Targeted Divisions: The cuts are concentrated in white-collar and corporate sectors, particularly:
- Amazon Web Services (AWS): Trimming administrative and legacy support roles.
- People Experience and Technology (PXT): Amazon’s internal HR and administrative arm.
- Prime Video & Retail: Streamlining management layers.
- Geographic Reach: While a significant number are US-based (specifically in Washington and California), reports suggest the impact will extend to global hubs, including teams in India (Bengaluru, Hyderabad, and Chennai).
Why Now? The Strategy Behind the Cuts
1. Cultural Reset & Flattening Layers
CEO Andy Jassy has shifted the narrative from financial distress to a “cultural reset.” He aims to eliminate “managerial bloat” and bureaucracy that accumulated during the pandemic-era hiring surge. The goal is to return to a “startup-like” speed by reducing the number of managers per organization.
2. The “Bureaucracy Tax”
Jassy has argued that Amazon’s massive scale has birthed a “bureaucracy tax” that slows innovation. By removing layers of middle management, the company aims to move decision-making closer to the front lines.
3. Reinvestment in AI
While Jassy downplayed AI as the primary driver, internal memos from October linked the restructuring to the efficiency gains of generative AI. The billions saved in corporate overhead (estimated at $4 billion annually) are being funneled into R&D for automation and massive AWS data center expansions.
