Amazon said Wednesday it will cut approximately 16,000 roles across the company as part of an organizational overhaul aimed at “reducing layers, increasing ownership, and removing bureaucracy,” while continuing to invest heavily in areas such as artificial intelligence.
In a message to employees, Beth Galetti, Amazon’s senior vice president of people experience and technology, said the reductions affect teams that were still finalizing restructuring efforts first announced in October.
Most U.S.-based employees whose roles are cut will be given 90 days to look for new positions internally, while those who do not transition will receive severance pay and other forms of support.
Galetti said the changes are not intended to signal a recurring cycle of broad workforce reductions and that Amazon will continue hiring in strategic areas.
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“We’re still in the early stages of building every one of our businesses and there’s significant opportunity ahead,” she told employees.
“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. But just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate,” Galetti added. “That’s never been more important than it is today in a world that’s changing faster than ever.”
The announcement comes one day after Amazon detailed an aggressive expansion of its grocery business, including plans to broaden same-day delivery of fresh groceries to more communities in 2026 and open more than 100 new stores over the next few years.
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The company also said on Tuesday that it will close its Amazon Go and Amazon Fresh physical stores, converting some locations into Whole Foods Market outlets, while continuing to invest in faster delivery options such as same-day perishables.
Amazon founder Jeff Bezos, who stepped down as chief executive officer in 2021, has become a major investor in artificial intelligence efforts outside the company.
The New York Times reported in November that Bezos has become deeply involved in a new artificial intelligence startup, committing both time and capital.
The venture, known as Project Prometheus, launched with roughly $6.2 billion in funding, including backing from the Blue Origin founder, who took on a leadership role as co-chief executive, according to the Times.
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The size of the investment puts the company among the most heavily funded AI startups in an increasingly crowded and competitive field.
Major technology companies including OpenAI, Microsoft, Meta and Google parent company Alphabet have also ramped up investments and announced a wave of new AI initiatives.
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