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AI replaces people as Amazon cuts 16 000 corporate jobs

Posted on January 28, 2026
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AI replaces people as Amazon cuts 16 000 corporate jobs

Amazon said on Wednesday it was cutting 16 000 jobs worldwide in the second major round of layoffs at the company in three months, as it restructures after pandemic-era over-hiring and expands the adoption of AI tools.

Reuters reported last week that Amazon was planning a second round of job cuts as part of a broader goal of trimming about 30 000 corporate roles, with the layoffs expected to affect workers in Amazon Web Services, retail, Prime Video and the human resources departments.

Amazon slashed 14 000 white-collar jobs in late October, with CEO Andy Jassy stressing the need for the company to eliminate excessive bureaucracy by trimming operational levels and reducing the number of managers.

The job cuts also underscore how artificial intelligence is changing corporate workforce dynamics

“Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan,” said Beth Galetti, senior vice president of people experience and technology at Amazon.

The job cuts also underscore how artificial intelligence is changing corporate workforce dynamics. Significant improvements in AI assistants are helping enterprises execute duties from routine administrative tasks to complex coding problems with rapid speed and precision, driving widespread adoption.

Jassy had said last summer that the increased use of AI tools would lead to more automation of duties, resulting in corporate job losses.

Robotics

Earlier this month, top executives at the World Economic Forum’s annual meeting said while jobs would disappear, new ones would spring up, with two of them saying AI would be used as an excuse by companies planning to cut jobs anyway.

The 30 000 jobs would together represent a small portion of Amazon’s 1.58 million employees, but nearly 10% of its corporate workforce. The majority of Amazon’s workers are in fulfilment centres and warehouses.

Tech giants, including Amazon, Facebook parent Meta Platforms, and Microsoft, had sharply ramped up hiring during the Covid-19 pandemic demand surge and have lately been restructuring their workforce.

Read: Amazon brings image-based shopping to South Africa

Amazon has also been investing in robotics at its warehouses to speed up packaging and deliveries for its e-commerce segment, reduce the reliance on human labour and cutting costs. The company is set to report quarterly results next week.  — Deborah Sophia and Zaheer Kachwala, (c) 2026 Reuters

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