Amazon cuts 16,000 jobs while continuing to invest heavily in AI technology

Amazon stated Wednesday it is going to lower about 16,000 positions throughout the corporate as a part of an organizational overhaul aimed toward “decreasing layers, rising possession and eliminating forms,” whereas persevering with to speculate closely in areas akin to artificial intelligence.

In a message to workers, Beth Galetti, Senior vice president of Amazon of individuals expertise and know-how, stated the reductions will affect groups that had been nonetheless finalizing restructuring efforts first introduced in October.

Most U.S.-based workers whose positions are eradicated shall be given 90 days looking for new positions internally, whereas those that don’t switch will obtain severance pay and different types of assist.

Galetti stated the modifications should not meant to sign a recurring cycle of broad workforce reductions, and that Amazon will continue hiring in strategic areas.

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The Amazon brand is displayed on the facade of Amazon Germany’s headquarters in Parkstadt Schwabing, Munich, Bavaria on January 27, 2026. (Matthias Balk/picture alliance through Getty Photographs / Getty Photographs)

“We’re nonetheless within the early phases of constructing all of our companies and there are important alternatives forward,” she instructed workers.

“A few of it’s possible you’ll be questioning if that is the beginning of a brand new rhythm – the place we announce large reductions each few months. That is not our plan. However simply as we all the time have, every group will proceed to judge the possession, velocity and talent to invent for patrons, and make adjustments if necessaryGaletti added. ‘That has by no means been extra essential than now, in a world that’s altering quicker than ever.’

The announcement comes a day after Amazon detailed an aggressive growth of its grocery enterprise, together with plans to increase same-day supply of recent groceries to extra communities by 2026 and open greater than 100 new shops within the coming years.

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An Amazon Buy groceries bag is seen throughout a media tour of a cashierless Amazon grocery store in Seattle, Washington, on February 21, 2020. (Jason Redmond/Reuters/Reuters)

The corporate additionally stated Tuesday that it’s going to shut its Amazon Go and Amazon Contemporary brick-and-mortar shops and convert some areas to Entire Meals Market retailers, whereas persevering with to put money into quicker supply choices akin to same-day perishables.

Amazon founder Jeff Bezos, who stepped down as CEO in 2021, has grow to be a serious investor in synthetic intelligence efforts outdoors the corporate.

The New York Times reports this in November that Bezos has grow to be deeply concerned in a brand new synthetic intelligence startup, investing each time and capital.

The enterprise, often known as Challenge Prometheus, was launched with about $6.2 billion in funding, together with backing from Blue Origin’s founder, who took on a management function as co-CEO, in accordance with the Instances.

Amazon founder Jeff Bezos gestures as he speaks throughout the primary panel of Italian Tech Week 2025 in Turin, Italy, on October 3, 2025. (Remo Casilli/Reuters/Reuters)

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The scale of the funding places the corporate among the many most closely funded AI startups in an more and more crowded and aggressive discipline.

Big tech companies together with OpenAI, Microsoft, Meta and Google dad or mum firm Alphabet have additionally ramped up investments and introduced a wave of recent AI initiatives.