Amazon to cut 16,000 jobs in second major layoff round

Investing.com -- Amazon announced Wednesday it will cut 16,000 jobs worldwide in its second major round of layoffs in three months, as the company restructures after pandemic-era over-hiring and increases adoption of artificial intelligence tools.

The cuts come after Amazon eliminated 14,000 white-collar positions in late October. CEO Andy Jassy had emphasized the need to reduce excessive bureaucracy by trimming operational levels and reducing manager numbers.

In an internal message to employees, Beth Galetti, Senior Vice President of People Experience and Technology, explained that while many teams finalized organizational changes in October, other teams only completed that work now.

Most US-based employees affected by the cuts will have 90 days to look for new roles internally, with timing varying internationally based on local requirements. Those unable to find new positions or who choose not to look will receive transition support including severance pay, outplacement services, and health insurance benefits where applicable.

Galetti said that this is not the beginning of a pattern of announcing broad reductions every few months, though teams will continue to evaluate "ownership, speed, and capacity to invent for customers" and make adjustments as needed.

Amazon is scheduled to report quarterly results next week. The company’s shares are up roughly 8% year-to-date.

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