Amazon on Wednesday confirmed plans to cut around 16,000 jobs worldwide, marking one of its largest workforce reductions in recent years. The move comes as the tech and e-commerce giant intensifies efforts to streamline operations while reallocating resources toward artificial intelligence and automation-driven growth.

Restructuring Tied to AI-Centric Transformation

According to the company, the layoffs are part of a broader restructuring aimed at improving efficiency and accelerating Amazon’s long-term AI roadmap. The company has been rapidly investing in generative AI tools across cloud services, logistics, advertising, and consumer platforms, prompting a reassessment of staffing needs in several non-core and overlapping roles.

Departments Expected to Be Impacted

While Amazon has not disclosed a detailed departmental breakdown, the job cuts are expected to affect corporate roles, including teams in retail operations, human resources, and support functions. Warehouse and frontline fulfillment jobs are largely expected to remain unaffected, as Amazon continues expanding logistics capacity in key markets.

Leadership Emphasises Long-Term Focus

Amazon executives said the decision was difficult but necessary to ensure the company remains competitive in a rapidly evolving tech landscape. Leadership highlighted that AI adoption is changing how teams operate, reducing manual workloads while increasing demand for highly specialized technical roles.

Industry-Wide Trend in Big Tech

Amazon’s announcement follows similar workforce reductions across the technology sector, as companies balance cost controls with aggressive investment in AI infrastructure. Analysts say the trend reflects a broader shift away from pandemic-era expansion toward more disciplined, innovation-focused growth models.

Outlook for Employees and Investors

The company stated that affected employees will receive severance packages, transitional support, and access to career resources. Despite the layoffs, Amazon reaffirmed its commitment to hiring in strategic areas such as AI research, cloud computing, and advanced automation.