Amazon Plans Thousands of Job Cuts to Prioritize AI Development

2 hours ago 12

January 23, 2026 | 05:35 pm

TEMPO.CO, Jakarta Amazon plans to start a second wave of job cuts next week, slashing about 14,000 white-collar jobs, or about half of the 30,000 jobs targeted. The total number this time around is estimated to be roughly the same as last year. According to NDTV, the mass layoffs are set to begin as early as next Tuesday. There has been no official comment from Amazon.

According to sources, jobs at Amazon Web Services, retail, Prime Video, and human resources, known as People Experience and Technology, will be affected. These sources cautioned that the details of Amazon's plan could change.

The Seattle-based online retailer attributed the wave of job cuts in October to the increasing use of artificial intelligence software. An internal memo describes this AI generation as the most transformative technology since the advent of the Internet. "And it's enabling companies to innovate much faster than ever before," Amazon said in the internal memo.

However, Amazon CEO Andy Jassy later told analysts in the company's third-quarter earnings conference that the layoffs were not actually driven by financial factors, and not even by AI. Instead, it was the culture, meaning the company had too much bureaucracy. "You end up with a lot more people than what you had before, and you end up with a lot more layers," he said.

Jassy had previously stated in 2025 that he anticipated Amazon's workforce would shrink over time as a result of efficiencies gained from the use of AI. The company is increasingly using AI to write its software code and adopting AI agents to automate routine tasks. Amazon is aiming to cut costs and reduce reliance on humans. The company showcased its latest AI model at its annual AWS cloud computing conference in December.

The 30,000 jobs represent only a small portion of Amazon's 1.58 million employees, but nearly 10 percent of the company's corporate workforce. The majority of Amazon's workers are in fulfillment centers and warehouses.

This will be the largest layoff in Amazon's three-decade history. The company had cut about 27,000 jobs in 2022.

The workers affected in October were informed that they would remain on the payroll for 90 days. During that time, they could apply for jobs internally or seek employment elsewhere. That period ends on Monday.

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