Amazon Unveils Devastating Layoffs: 16,000 Workers Set to Lose Jobs
In a move that sends shockwaves through its vast workforce, Amazon has confirmed plans to axe 16,000 jobs across its organization. The company's Senior Vice President, Beth Galetti, made the announcement as part of an effort to streamline operations and eliminate layers of bureaucracy.
The news was initially leaked in an email sent to workers by Amazon Web Services Senior Vice President Colleen Aubrey, who revealed that "impacted colleagues" from the US, Canada, and Costa Rica had already been notified. While Galetti acknowledged the difficulties of making such decisions, she reassured employees that these choices are made with the company's future success in mind.
This latest round of layoffs marks a continuation of Amazon's cost-cutting efforts, which began last October when 14,000 roles were eliminated across its games, logistics, payment, and cloud computing divisions. The decision to axe jobs was largely attributed to the increasing availability of AI technologies, which has allowed companies to innovate at unprecedented speeds.
The latest layoffs represent a significant blow to Amazon's workforce, with those affected set to receive severance pay if they fail to secure internal roles within 90 days. While Galetti emphasized that the company does not intend to announce broad reductions on a regular basis, there is growing concern about the long-term impact of these cuts.
Amazon's decision comes as the company shifts its focus towards grocery deliveries and away from physical stores. This strategic shift was highlighted in Amazon's recent announcement that it will be shutting down its remaining Amazon Go and Amazon Fresh physical stores. Despite this, Amazon remains confident in its ability to adapt and thrive in an increasingly competitive market.
In a statement, Amazon revealed that its year-over-year net sales grew by 13% in the third quarter of 2025 alone, with its net income increasing to $21.2 billion compared to the previous year's figure of $15.3 billion. While this financial growth may provide some comfort, it is unclear whether these results will translate into sustained success for Amazon amidst an increasingly challenging business landscape.
In a move that sends shockwaves through its vast workforce, Amazon has confirmed plans to axe 16,000 jobs across its organization. The company's Senior Vice President, Beth Galetti, made the announcement as part of an effort to streamline operations and eliminate layers of bureaucracy.
The news was initially leaked in an email sent to workers by Amazon Web Services Senior Vice President Colleen Aubrey, who revealed that "impacted colleagues" from the US, Canada, and Costa Rica had already been notified. While Galetti acknowledged the difficulties of making such decisions, she reassured employees that these choices are made with the company's future success in mind.
This latest round of layoffs marks a continuation of Amazon's cost-cutting efforts, which began last October when 14,000 roles were eliminated across its games, logistics, payment, and cloud computing divisions. The decision to axe jobs was largely attributed to the increasing availability of AI technologies, which has allowed companies to innovate at unprecedented speeds.
The latest layoffs represent a significant blow to Amazon's workforce, with those affected set to receive severance pay if they fail to secure internal roles within 90 days. While Galetti emphasized that the company does not intend to announce broad reductions on a regular basis, there is growing concern about the long-term impact of these cuts.
Amazon's decision comes as the company shifts its focus towards grocery deliveries and away from physical stores. This strategic shift was highlighted in Amazon's recent announcement that it will be shutting down its remaining Amazon Go and Amazon Fresh physical stores. Despite this, Amazon remains confident in its ability to adapt and thrive in an increasingly competitive market.
In a statement, Amazon revealed that its year-over-year net sales grew by 13% in the third quarter of 2025 alone, with its net income increasing to $21.2 billion compared to the previous year's figure of $15.3 billion. While this financial growth may provide some comfort, it is unclear whether these results will translate into sustained success for Amazon amidst an increasingly challenging business landscape.