Amazon has announced plans to cut around 16,000 corporate jobs worldwide, marking its second large round of layoffs in just three months. The decision is part of a broader restructuring effort after aggressive pandemic-era hiring left the company with what executives describe as excessive layers of management and bureaucracy.

AI and Automation Drive Restructuring

The layoffs come as Amazon accelerates the adoption of artificial intelligence across its operations. Improved AI tools are increasingly capable of handling tasks ranging from routine administrative work to complex software development, reducing the need for certain corporate roles. CEO Andy Jassy has previously stated that growing automation would inevitably lead to fewer corporate jobs over time.

Departments Likely to Be Impacted

While Amazon has not officially named the business units affected, reports indicate that roles in Amazon Web Services, retail, Prime Video, and human resources are likely to see reductions. These cuts follow the elimination of about 14,000 white-collar jobs in October, bringing total planned corporate job reductions to roughly 30,000.

Executive View: Culture, Not Finances

Amazon leadership has emphasized that the layoffs are not driven by financial distress. In its most recent quarter, the company posted nearly 40% growth in profits, with revenue exceeding $180 billion.

Jassy has argued that rapid expansion over recent years created unnecessary complexity, and the current restructuring is aimed at streamlining decision-making and boosting efficiency.

Support for Affected Employees

According to senior vice president Beth Galetti, U.S.-based employees impacted by the layoffs will have 90 days to seek other roles within the company. Those who are unable or unwilling to transition internally will be offered severance packages, health benefits, and outplacement services.

Part of a Wider Tech Industry Shift

Amazon’s job cuts reflect a broader trend across the technology sector. Companies such as Meta, Microsoft, and Pinterest have also announced layoffs as they rebalance workforces after pandemic-driven growth and pivot toward AI-focused investments.

Economists note that while some roles are disappearing, new jobs tied to emerging technologies are expected to replace them over time.

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