Amazon to Slash 16,000 Jobs Worldwide in Sweeping AI-Focused Restructuring Amid Employee Outrage Over Vacation Pay Disputes

In late January 2026, Amazon announced one of the largest workforce reductions in its history, cutting about 16,000 corporate jobs worldwide. Combined with roughly 14,000 layoffs in October 2025, nearly 30,000 roles—around ten percent of its global corporate workforce—were eliminated. The announcement was shared internally and publicly by Beth Galetti, Senior Vice President of People Experience and Technology.

Company leaders said the cuts were aimed at simplifying operations, reducing management layers, and redirecting resources toward priorities like artificial intelligence, AWS growth, and faster innovation. CEO Andy Jassy has argued these moves are necessary to stay competitive amid heavy industry investment in emerging technologies.

Employees across AWS, retail, devices, advertising, and HR were affected. In the U.S., many received a 90-day transition period with full pay and benefits, while those unable to find internal roles were offered severance. International arrangements varied by country.

The layoffs sparked strong reactions, particularly in tech hubs such as Seattle, where workers described shock and anxiety after years of rapid hiring. Local economies also felt the ripple effects.

One former employee shared a story underscoring the human cost of the cuts: days before a planned vacation, they were told their role was eliminated, and their approved leave was initially denied pay. After reviewing policy and pushing back, the decision was reversed, their compensation restored, and the experience became a lesson in self-advocacy—highlighting the tension between efficiency-driven restructuring and employee dignity.

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