Amazon is gearing up for its second major layoff wave as early as next week, targeting around 16,000 corporate jobs to hit CEO Andy Jassy's goal of slashing 30,000 roles overall. This follows 14,000 cuts in October 2025, affecting teams in AWS, retail, Prime Video, and HR, marking the largest workforce reduction in the company's history, surpassing 27,000 jobs axed in 2022. Affected employees get at least 90 days of pay during notice.
Big Tech layoffs peaked in 2023 with AI cited for thousands of cuts, but slowed before surging again in 2025-2026, with over 62,000 jobs lost in early 2026 amid economic pressures. Jassy downplays AI's direct role, framing cuts as trimming "corporate bloat" and bureaucracy built during pandemic hiring sprees. Yet AI efficiencies are reshaping roles, with firms like Microsoft and Intel also trimming for cost control and AI pivots.
The real drivers mix post-COVID over-hiring corrections, slowing demand, rising costs, and investor pressure—not just AI, despite some "AI-washing" claims. Amazon's pandemic boom led to excess layers; now it's flattening for agility, though AI accelerates efficiency in repetitive tasks. In India hubs like Bengaluru, teams face impacts, adding to local tech job market strain.
These cuts signal ongoing Big Tech belt-tightening rather than a 2023-style spree, as 2026 trackers show steady but not explosive reductions. Amazon's move prioritizes culture reset amid AI investments, but could ripple globally.
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