Amazon Layoffs 2026: 30,000 Corporate Jobs on the Chopping Block as AI Investment Soars

Jan 27
2 min read

Amazon is preparing to eliminate nearly 30,000 corporate positions in what would become the largest workforce reduction in company history. The second wave of cuts begins this week, targeting employees across Amazon Web Services, retail operations, Prime Video, and human resources divisions. CEO Andy Jassy insists the layoffs stem from cutting bureaucracy, not financial struggles or AI replacement, though the company simultaneously announced $100 billion in AI infrastructure investments.

The Scale and Scope of Amazon Layoffs Cuts

The tech giant cut approximately 14,000 white-collar positions in October 2025, and sources confirm another 14,000 to 16,000 jobs will be eliminated starting January 27. This represents nearly 10% of Amazon's 350,000-person corporate workforce. Amazon Web Services faces significant cuts despite being the company's most profitable division, while retail operations, Prime Video, and HR departments will all see substantial reductions extending to international teams in India.

The $100 Billion AI Paradox

CEO Andy Jassy initially blamed AI advancements for October's layoffs, but later reversed course during earnings calls, claiming cuts were "not really financially driven and not even really AI-driven" but instead focused on reducing bureaucracy. Yet Amazon simultaneously committed over $100 billion to AI and cloud infrastructure expansion through 2035, creating an uncomfortable contradiction: eliminating human workers while investing billions in technology that automates their tasks.

Employee Impact and Industry Context

Affected employees receive approximately 90 days to find internal positions, but displaced workers far exceed available openings. If completed, these layoffs would surpass Amazon's previous record of 27,000 job cuts in 2022. Less than a week after October's cuts, AWS experienced its longest unplanned outage, requiring human engineers to fix errors made by automated systems.

Tech Industry Restructuring Wave

Amazon joins Meta (1,500 jobs), Autodesk (1,000 jobs), and Ericsson (1,600 jobs) in major 2026 restructuring efforts. The pattern suggests a broad industry shift toward leaner operations and AI-enabled productivity, even as companies post strong financial results. The tech sector appears to be betting on automation replacing human labor for repetitive tasks across engineering, operations, and customer service functions.

Investors and Founders Summit USA 🚀

Your Network is Your Networth. Meet the biggest founders, decision makers and investors from around the world, make business partnerships, get new clients, and get funding for your project.