Amazon Axes 16,000 Employees as AI Reshapes Workforce

Amazon has reportedly laid off around 16,000 employees in a fresh round of job cuts, as the global tech giant accelerates its shift toward artificial intelligence and automation.

The layoffs are understood to span multiple departments, including corporate roles, technology teams, and support functions, marking one of the company’s largest workforce reductions since its post-pandemic restructuring began.

While Amazon has not officially framed the cuts solely as an “AI-driven” decision, the job losses come amid a broader push by the company to integrate artificial intelligence across its operations.

Amazon has invested heavily in AI-powered logistics, automated customer service systems, cloud-based AI tools through Amazon Web Services (AWS), and internal productivity software designed to reduce reliance on human labour.

Industry analysts say many roles traditionally handled by mid-level staff—such as data processing, forecasting, customer support, and internal reporting—are increasingly being replaced or streamlined by AI systems capable of performing the same tasks faster and at lower cost.

Amazon CEO Andy Jassy has previously stated that the company must become “leaner and more efficient” to remain competitive, particularly as economic pressures mount and consumer spending tightens in key markets.

The layoffs have reignited global debate over the impact of artificial intelligence on employment, with critics warning that rapid AI adoption is outpacing efforts to retrain workers or create alternative job pathways. Supporters, however, argue that automation is inevitable and necessary for long-term growth.

Amazon joins a growing list of major tech companies—including Google, Meta, Microsoft and others—that have announced significant job cuts while simultaneously increasing investment in artificial intelligence.