Amazon Announces Layoffs of 16,000 Employees in Bid to Streamline Operations Amid AI Push

Washington D.C. – In an effort to bolster its competitive standing in the field of Artificial Intelligence (AI), American online retail giant Amazon has announced the layoff of 16,000 employees.

This marks the second major round of job cuts by the company within the last three months. Amazon stated in a blog post published Wednesday that this move is aimed at speeding up decision-making by reducing complex processes within the organization.

According to Beth Galetti, Amazon's Senior Vice President of Human Resources, the company is working towards flattening hierarchies, increasing responsibilities, and eliminating unnecessary administrative procedures. “We want to make the organization lean and effective,” she noted.

Previously, in October, Amazon had announced the layoff of 14,000 corporate employees. Chief Executive Officer Andy Jassy has put forward a vision of operating Amazon like the “world's largest startup.”

Amazon is the second-largest private employer in the United States after Walmart. According to data filed with the U.S. Equal Employment Opportunity Commission in 2024, the company has over 350,000 corporate employees.

The last two rounds of cuts have affected approximately 9 percent of office-level staff. Clarifying that these layoffs will not become a regular process, Galetti stated that strategic hiring will continue in areas necessary for future customer innovation.