Amazon began the first wave of what could become the largest layoffs in its history on Jan. 26, initiating a multimonth workforce reduction that may eliminate up to 30,000 corporate jobs across the United States. Regulatory filings show that between 1,001 and 2,500 employees in Washington state are affected in the opening phase, with additional cuts scheduled through May in California, Virginia, and New Jersey.
The move surpasses the roughly 27,000 roles Amazon cut between late 2022 and early 2023, marking the most significant restructuring in the company's three-decade history. The layoffs come despite continued revenue growth and heavy capital investment, underscoring a strategic pivot rather than a response to financial distress.
Jan. 26 carries particular significance for many workers. Employees swept up in an earlier round of roughly 14,000 cuts announced in October were given 90 days to seek internal transfers or external employment while remaining on payroll, a period that expired today. For those unable to secure new roles, employment officially ends as the new phase begins.
Amazon's restructuring is closely tied to its aggressive investment in artificial intelligence and automation. The company has committed more than $100 billion to AI infrastructure and data centers, signaling a shift toward software-driven efficiency over traditional headcount expansion. As finance analyst Michael Ryan put it, "Amazon isn't laying people off because it's struggling. It's doing it because it can." He added, "This is what a publicly traded efficiency machine does once growth slows and shareholders demand higher profit margins. You replace people with systems, flatten management, and cut costs fast."
Internal data indicate that middle management has borne the brunt of the cuts. More than 78% of eliminated positions were held by mid-level managers, particularly at levels L5 to L7, with over 80% of U.S.-based layoffs concentrated in Amazon's retail division. Functions spanning e-commerce, human resources, and logistics have been affected.
Chief Executive Andy Jassy has characterized the reductions as a structural reset rather than simple belt-tightening. "You end up with a lot more people than what you had before, and you end up with a lot more layers," Jassy said during Amazon's third-quarter earnings call, arguing that the company needs to operate more like "the world's largest startup."
Beth Galetti, Amazon's senior vice president of people experience and technology, linked the changes directly to technological transformation. "This generation of AI is the most transformative technology we've seen since the internet," Galetti said. "We're convinced that we need to be organised more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers."
Behind the corporate rationale, the human impact has been abrupt. Employees reported losing access to work laptops and internal systems within minutes of receiving layoff notifications, including performance histories stored on company platforms. While the cuts represent nearly 10% of Amazon's roughly 350,000 corporate employees, they account for a small share of its global workforce of about 1.5 million.
Amazon's actions reflect a broader shift across corporate America. Major employers including FedEx, Verizon, McDonald's, Nike, and Wells Fargo have signaled workforce reductions heading into 2026, as companies recalibrate staffing amid slowing growth and rapid AI adoption. Ryan cautioned that job losses are not always labeled as layoffs, saying, "Return-to-office mandates, tighter performance metrics, middle-manager cuts... those are all headcount tools." He added, "Sometimes the pink slip doesn't come in an email. It comes as a calendar invite and a new set of rules."
