Amazon set to cut thousands of corporate jobs next week

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 January 24, 2026

Amazon is gearing up for another significant round of corporate layoffs next week, signaling a major shift in its workforce strategy. This follows a substantial cut of 14,000 white-collar jobs in October.

The New York Post reported that the upcoming cuts, expected to start as early as Tuesday, will likely match the scale of the previous round, according to two sources familiar with the matter.

These reductions are part of a larger plan to trim around 30,000 corporate positions, nearly 10% of Amazon’s corporate workforce

While this is a small fraction of its 1.58 million total employees—most of whom work in fulfillment centers and warehouses—it marks the largest layoff in the company’s three-decade history. This surpasses even the 27,000 jobs cut in 2022.

October Layoffs and the AI Connection

The October layoffs, affecting 14,000 employees, were linked to the transformative power of artificial intelligence in an internal letter. The letter described AI as a game-changer, enabling faster innovation across industries.

However, CEO Andy Jassy offered a different perspective during the third-quarter earnings call. He stated the reduction was “not really financially driven and it’s not even really AI-driven.”

Jassy pointed to internal culture as the key driver. He noted, “it’s culture,” highlighting excessive bureaucracy and organizational layers as the root issue.

The next wave of cuts, set to begin as soon as Tuesday, will impact roles in Amazon Web Services (AWS), retail, Prime Video, and the human resources unit known as People Experience and Technology. The exact scope of affected roles remains unclear, and the two sources cautioned that plans could shift.

These sources, who requested anonymity due to lack of authorization to speak on the matter, indicated the cuts would be similar in size to October’s. An Amazon spokesperson declined to comment on the plans.

For employees affected in October, a 90-day payroll period was provided to seek internal roles or external opportunities. That period expires on Monday, just before the new round begins.

AI’s Role in Corporate Efficiency

The broader context of these layoffs includes Amazon’s push toward AI-driven efficiencies. The company showcased its latest AI models at its annual AWS cloud computing conference in December.

Jassy himself noted earlier in 2025 that he expects the corporate workforce to shrink over time due to AI’s ability to streamline operations. Corporations globally are adopting AI to automate routine tasks and reduce costs.

This raises questions about the future of white-collar work. As AI tools write code and handle mundane tasks, the need for human oversight may diminish in certain sectors.

From a free-market perspective, Amazon’s move to cut bureaucracy is a necessary step toward efficiency. Jassy’s focus on reducing layers signals a return to leaner operations, a principle many businesses stray from during rapid growth.

Yet, for center-right observers skeptical of unchecked corporate power, these layoffs—while pragmatic—highlight a troubling reliance on tech to replace human labor. AI may save costs, but at what social price? Workers displaced by automation often struggle to pivot to new roles without significant retraining.

Investors, however, might see an opportunity here. Amazon’s focus on trimming fat could boost margins, making it a stronger long-term bet. Consider reallocating portfolios toward tech giants, prioritizing efficiency, while keeping an eye on sectors poised to absorb displaced talent—perhaps logistics or niche consulting, where human judgment still reigns.

About Ginny Waterman

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