Amazon to Cut Thousands More Jobs to Focus on AI
The first round in October affected 14,000 employees, meaning the two rounds together will account for roughly 10% of Amazon’s office workforce.
The company explained that the reductions are necessary “to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy.” It added that it will “continue hiring and investing in strategic areas and functions that are critical to our future,” while noting that further workforce cuts are possible.
Amazon is also planning to close its remaining Fresh grocery stores and Go markets, and to discontinue its Amazon One biometric payment system.
Although the roughly 30,000 job cuts across both rounds represent just under 2% of the company’s total workforce of about 1.58 million, these layoffs mark the largest downsizing in Amazon’s history, surpassing the 27,000 positions eliminated in 2022–2023.
In October, Amazon cited the introduction of AI technologies as a reason for the layoffs, saying these tools are “enabling companies to innovate much faster than ever before.”
Since 2024, Amazon has committed around $40 billion to four US data center projects as it builds infrastructure to compete with OpenAI, Google, Microsoft, Meta, and other technology leaders.
The announcement came just one day after UPS revealed plans to cut an additional 30,000 positions, largely due to a reduction in collaboration with Amazon. UPS had already eliminated 62,000 jobs the previous year.
The delivery company reported earnings for 2025 on the same day, noting net income of $5.57 billion, down from $5.78 billion in 2024.
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