Amazon is preparing to cut between 1,001 and 2,500 corporate roles starting January 26, 2026, across Washington, California, Virginia, and New Jersey. The layoffs are part of a broader restructuring initially announced in October 2025 that officially targets 14,000 positions, though Reuters sources suggest the total could reach 30,000 by May 2026. CEO Andy Jassy said the changes aim to build a leaner organization focused on artificial intelligence and cloud computing.
Employees affected in January will receive 90 days to apply for internal roles before severance begins. These cuts represent only the first wave of a historic workforce reduction. Here’s what’s happening as Amazon reshapes its corporate structure and prepares for an AI-driven future.
First Wave of January Layoffs
The first wave of layoffs kicks off in Washington state on January 26, 2026, according to Worker Adjustment and Retraining Notification Act filings. Additional reductions are expected across California, Virginia, and New Jersey throughout the month. Most employees impacted will have a 90-day transition period to apply internally before severance packages begin.
This initiative stems from Amazon’s October 28, 2025 announcement detailing a broader restructuring plan affecting approximately 14,000 corporate positions. Reuters sources suggest the total reduction could grow to 30,000 by May 2026. For many employees, the January wave is a preview of significant organizational changes tied directly to automation and AI priorities.
The Scale of the Cuts
The October 2025 announcement confirmed Amazon would cut roughly 14,000 roles, about 4% of its 350,000-person corporate workforce worldwide, according to BBC News. Despite the reductions, Amazon plans to continue hiring in strategic areas such as artificial intelligence and AWS. Business Insider reported that more than 78% of the first U.S. wave hit mid-level managers, raising questions about the company’s efforts to flatten its organizational structure.
Industry analysts warn that total layoffs could reach 30,000 by May 2026, nearly doubling the official figure. If accurate, these reductions would surpass the 27,000 roles eliminated from late 2022 to early 2023, making it the largest corporate restructuring in Amazon’s history.
AI Investments Driving Workforce Changes
Amazon committed $100 billion in 2025 for capital expenditures, focusing largely on artificial intelligence infrastructure and data centers, according to CNBC’s February 2025 report. Beth Galetti, VP of People eXperience and Technology, wrote in an October 28, 2025 memo: “This generation of AI is the most transformative technology we’ve seen since the Internet.” CEO Andy Jassy has stated AI will reduce the corporate workforce as automation handles routine tasks.
This push explains why mid-level management and retail-facing divisions are absorbing most of the initial reductions. Internal data showed over 80% of January layoffs impacted these groups, aligning with Amazon’s plan to streamline operations and reduce bureaucracy across corporate teams.
Support and Transition Offers
Amazon is offering a 90-day paid transition period for affected employees. During this time, employees keep pay and benefits while applying internally, with recruiting teams prioritizing internal candidates. Those who do not secure new positions receive severance, outplacement services, extended health coverage, and training access.
Beth Galetti emphasized support in the October 28, 2025 announcement: “We’re working hard to support everyone whose role is impacted.” Despite these provisions, some employees reported sudden system lockouts that limited access to performance reviews and internal applications, highlighting challenges in executing a smooth transition.
Wider Industry Impacts
Amazon’s January layoffs come amid a broader wave affecting over 100 major U.S. companies, including FedEx, Verizon, McDonald’s, Nike, Wells Fargo, General Motors, and Spirit Airlines, according to Newsweek. In 2025, U.S. employers announced 1.17 million cuts through November, a 54% increase over 2024. Technology companies led this cycle, with Intel, Microsoft, and Salesforce reducing staff as AI adoption reshaped operations.
Labor analysts stress that these reductions reflect technological shifts rather than an economic collapse. Still, the human impact is significant. Employees face heightened pressure to secure new roles, relocate, or adjust career paths in a job market marked by higher unemployment and fewer openings.
Amazon’s Future and Workforce Strategy
Amazon aims to operate “like the world’s largest startup,” reducing management layers and empowering individual contributors. The company targets a 15% reduction in manager-to-employee ratios to streamline decision-making. Late-January 2026 Q4 earnings will reveal whether the restructuring improves profitability and accelerates AWS growth.
Internal communications suggest additional waves could continue through May 2026, potentially reaching the 30,000 total cited by Reuters sources. The broader tech sector watches closely, while displaced employees navigate a tougher job market. Amazon’s leaner structure and massive AI investments will shape both the company’s operations and the wider corporate workforce landscape in 2026.
Sources:
Amazon Workforce Reduction Statement. About Amazon, October 28, 2025
Amazon.com Announces Fourth Quarter Results. Amazon Investor Relations, February 5, 2025
Amazon to cut about 14000 corporate jobs in AI push. Reuters, October 28, 2025
Exclusive: Amazon targets as many as 30000 corporate job cuts. Reuters, October 27, 2025
Unemployment rate 4.6 percent in November 2025. U.S. Bureau of Labor Statistics, December 18, 2025
Challenger Report December 2025. Challenger, Gray & Christmas, January 8, 2026