Amazon Announces Major Workforce Reduction: 16,000 Corporate Jobs Eliminated
In a significant corporate restructuring move, Amazon began notifying approximately 16,000 corporate employees on January 28 that their positions have been eliminated. The company-wide memo from HR chief Beth Galetti emphasized the need for "reducing layers and removing bureaucracy" but notably omitted specific details about which teams would be affected by these sweeping cuts.
Internal Documents Reveal Scope of Layoffs
Internal Slack messages and executive memos obtained by Business Insider have now revealed the comprehensive nature of these workforce reductions. The layoffs are impacting both Amazon's highly profitable cloud computing division and its core retail operations. Many affected employees who posted to internal channels seeking job opportunities held software engineering roles, indicating a significant impact on technical talent within the organization.
AWS and Retail Teams Face Significant Impact
According to Business Insider's reporting, the affected teams span across Amazon's cloud computing arm, Amazon Web Services (AWS), and its retail operations. Within AWS, the layoffs have touched employees working on several key initiatives:
- Bedrock, the company's AI cloud service platform
- Redshift, the data warehouse platform
- The ProServe consulting division
On the retail side, the workforce reductions have impacted:
- The Prime subscription service team
- The last-mile Delivery Experience team
The layoffs are affecting workers across multiple geographic regions, including the United States, United Kingdom, and India, with notifications going out on Wednesday morning. Those affected received emails informing them that their badge access had been immediately restricted—a detail that meant some employees currently in Amazon offices required security assistance to exit the building premises.
Transition Period and Severance Details
Affected US-based employees will receive full pay and benefits for 90 days, during which they can apply for internal positions within Amazon. Those who don't secure a new role—or choose not to look for one—will receive severance packages, outplacement services, and continued health insurance benefits.
An internal FAQ obtained by Business Insider provides additional operational details:
- Employees must return their laptops via shipping boxes sent after their separation date
- Affected workers have until February 13 to fill out a survey about retrieving personal belongings from their desks
- Items not claimed within the specified timeframe will be donated or disposed of
Amazon's Strategic Restructuring Rationale
Internal memos from Amazon executives frame these cuts as necessary for the company to operate like the "world's largest startup"—a phrase that has become CEO Andy Jassy's signature corporate philosophy. AWS Vice President Prasad Kalyanaraman wrote in one such memo that this approach "means doubling down on a culture of ownership, speed, and experimentation—which requires us to continue evolving how we're structured."
This marks Amazon's second major workforce reduction since October, when 14,000 roles were eliminated. The company employs over 1.5 million people globally, though its corporate workforce accounts for approximately 350,000 of that total. These successive layoffs indicate a significant shift in Amazon's operational strategy as it navigates changing market conditions and seeks to maintain its competitive edge in both cloud computing and retail sectors.
