Quick Read
- Amazon plans to cut up to 16,000 corporate and technology jobs globally starting around January 27, 2026.
- These new cuts bring Amazon’s total corporate workforce reductions to nearly 30,000 since late last year.
- The company is closing all 72 of its Amazon Fresh and Amazon Go physical grocery stores by February 1, 2026.
- Amazon cites long-term efficiency, reduced bureaucracy, and a strategic shift towards cloud services and AI as reasons for the changes.
- Severance packages for affected employees include pay, health coverage, career transition support, and potential internal transfers.
SEATTLE (Azat TV) – Amazon announced a significant corporate workforce reduction this week, targeting up to 16,000 corporate and technology roles globally, while simultaneously confirming the closure of all 72 of its Amazon Fresh and Amazon Go physical grocery stores. These moves, effective around January 27 and February 1, 2026, respectively, represent a major strategic realignment by the e-commerce giant to streamline operations, reduce bureaucracy, and reallocate resources towards core growth areas like cloud services and artificial intelligence.
The latest round of corporate layoffs follows earlier reductions of approximately 14,000 positions last year, bringing Amazon’s total corporate job losses close to 30,000. This figure represents roughly 10% of the company’s white-collar workforce. Amazon stated that the decision supports long-term efficiency goals, aiming to simplify internal structures and shift resources toward priority areas such as Amazon Web Services (AWS) and AI development, according to *The Economic Times*.
Extensive Corporate Workforce Reductions
The current wave of layoffs, which began around January 27, primarily targets white-collar roles across various departments. Employees in Amazon Web Services, Prime Video, human resources, retail strategy, analytics, internal tools, and program management face heightened exposure. Warehouse and delivery staff are largely unaffected by these specific corporate cuts.
Geographically, India is one of the regions most impacted, with corporate teams in Bengaluru, Hyderabad, and Chennai reporting significant uncertainty. These teams often support global cloud systems and internal platforms, meaning job losses in these locations could affect international operations, as reported by *Deccan Herald*.
Amazon CEO Andy Jassy has attributed these cuts to a need to streamline operations and reduce bureaucracy after years of rapid growth. While AI has been cited as a factor in many recent tech layoffs, Jassy previously suggested that Amazon’s reductions were “not really financially driven and not even really AI-driven—not right now, at least. It’s culture,” referring to an expansion of management layers that created overlap and slower decision-making. He also noted that growth projections made during the pandemic did not meet expectations, and automation and AI systems are now replacing several routine tasks.
Amazon Exits Branded Grocery Stores
In a parallel strategic shift, Amazon confirmed on Tuesday that it is closing all 57 Amazon Fresh and 15 remaining Amazon Go locations across the U.S. Most stores are expected to cease operations by February 1, though California locations will remain open for 45 more days due to state labor notification requirements. This decision marks the end of a decade-long experiment in Amazon-branded grocery and convenience stores, as reported by *GeekWire*.
Amazon explained that despite ‘encouraging signals,’ it was unable to create ‘a truly distinctive customer experience with the right economic model needed for large-scale expansion’ for its Fresh and Go stores. The company will now concentrate its physical retail efforts on its Whole Foods Market locations and grocery delivery from Amazon.com.
While Amazon did not disclose the total number of employees impacted by the store closures, the company is working to place workers in other roles within its fulfillment and operations network. Employees affected by the store closures are being offered 90 days of full pay and benefits as part of their severance package.
Strategic Pivot and Employee Support
For corporate employees affected by the layoffs, Amazon has not yet shared official figures for the severance package. However, based on past reductions, employees can expect a lump sum payment linked to years of service, continued health insurance coverage for a limited period, and career transition services such as job search coaching and resume support. Some eligible employees may also apply for internal transfers.
Looking ahead, Amazon’s grocery strategy will focus on expanding Whole Foods Market, with plans to open more than 100 additional stores over the next several years and expand its smaller Whole Foods Daily Shop format. The company is also significantly investing in its Same-Day Delivery service for fresh groceries, which has seen perishable grocery sales grow 40-fold since January 2025 and is now available in 2,300 U.S. cities. The ‘Just Walk Out’ technology, originally developed for Amazon Go, will live on as a licensing business for third-party locations.
These sweeping changes reflect Amazon’s broader ‘reset,’ signaling a clear prioritization of profitability, efficiency, and high-growth sectors like AI and cloud computing, even if it means discontinuing experimental ventures and significantly restructuring its workforce. This dual strategy positions Amazon to adapt to evolving market dynamics and investor expectations, focusing on core strengths and proven models.