Amazon to Cut Thousands More Jobs as Generative AI Reshapes Workforce

Amazon has announced another major round of layoffs as it accelerates its shift toward generative artificial intelligence and continues to streamline a workforce that ballooned during the pandemic.

Beth Galetti, Amazon’s senior vice president of human resources, said in a blog post on Wednesday that the company has been “reducing layers, increasing ownership, and removing bureaucracy.” The latest reductions follow a round of job cuts in October, when Amazon said it would lay off 14,000 workers. While some divisions completed those organizational changes then, others only finalized them now.

U.S.-based employees affected by the move will be given 90 days to search for new roles internally. Those who are unsuccessful or choose not to pursue another position will receive severance pay, outplacement services, and continued health insurance benefits, Galetti said.

Chief Executive Andy Jassy, who has pursued aggressive cost-cutting since succeeding founder Jeff Bezos in 2021, said in June that he expects generative AI to reduce Amazon’s corporate workforce over the next few years. The current layoffs mark the company’s largest since 2023, when Amazon cut 27,000 jobs.

Amazon’s move reflects a broader trend across Big Tech and retail, where companies are scaling back after hiring aggressively during the COVID-19 pandemic. Amazon’s workforce doubled as millions stayed home and boosted online spending.

Hiring across the U.S. has stagnated. In December, the economy added just 50,000 jobs, barely changed from a downwardly revised 56,000 in November. Labor data points to a reluctance among businesses to expand headcount even as economic growth has picked up.

Many firms hired heavily after the pandemic and no longer need to add staff. Others are holding back due to uncertainty driven by President Donald Trump’s shifting tariff policies, elevated inflation, and the rapid spread of artificial intelligence, which is reshaping—or replacing—some roles.

Economists often describe the current U.S. labor market as a “no-hire, no-fire” environment. Yet some companies are now openly cutting back. On Tuesday, UPS said it plans to eliminate up to 30,000 operational jobs this year through attrition and buyouts, as it reduces shipments from what was once its largest customer, Amazon.

That follows 34,000 job cuts at UPS in October and the closure of daily operations at 93 leased and owned buildings during the first nine months of last year.