Amazon is slashing 16,000 jobs, its largest workforce reduction since 2023, as the tech industry continues to grapple with post-pandemic recalibration.
The cuts, announced Wednesday by senior vice president Beth Galetti, follow October’s 14,000 layoffs.
U.S. employees will have 90 days to find new roles internally before severance packages, health benefits, and outplacement services take effect.
Despite the downsizing, Galetti stressed Amazon will keep hiring in “strategic areas critical to our future.”
The move reflects broader labour market stagnation. U.S. employers added just 50,000 jobs in December, nearly unchanged from November.
Companies that expanded aggressively during the pandemic are now pulling back amid inflation, tariff uncertainty under President Donald Trump, and the disruptive rise of artificial intelligence.
Amazon’s pandemic-era hiring boom doubled its workforce, but today’s cuts highlight a new reality: leaner operations, targeted investment, and a cautious approach to growth.
