Amazon to cut jobs, AGAIN: this time, 27k employees bite the dust
By Elena Ramirez, Tech Correspondent
Introduction
Seattle, WA – January 31, 2026 – Amazon has announced its largest-ever round of layoffs, cutting 27,000 corporate jobs worldwide in a push to reduce bureaucracy and accelerate AI investments. This comes just three months after the company eliminated 14,000 roles in October 2025, bringing the total workforce reductions since last fall to over 41,000 – the biggest in Amazon's 31-year history. The e-commerce and cloud giant, which employs about 1.5 million people globally, is navigating a rapidly changing tech landscape amid economic pressures and internal cultural shifts.
Announcement Details
The news broke awkwardly when Amazon inadvertently sent an email to employees on January 27, referencing the layoffs before the official reveal. The message, quickly retracted, included a meeting invitation and commiseration for affected workers in the US, Canada, and Costa Rica. On January 28, Senior Vice President of People Experience and Technology Beth Galetti confirmed the cuts in a company blog post. "The reductions we are making today will impact approximately 27,000 roles across Amazon, and we're again working hard to support everyone whose role is impacted," Galetti wrote. The layoffs primarily target corporate positions in AWS, retail, HR, advertising, and devices, while sparing frontline warehouse and delivery roles for now.
History of Layoffs
This isn't Amazon's first major workforce overhaul. In October 2025, the company slashed 14,000 corporate jobs as part of CEO Andy Jassy's initiative to flatten the organization and eliminate layers of management. Prior to that, Amazon conducted smaller cuts in 2024, including hundreds in Prime Video, MGM Studios, and healthcare units. The pandemic-era hiring boom saw Amazon's corporate headcount triple from 117,000 in 2017 to 350,000 by 2022, leading to overstaffing as growth slowed post-COVID. In 2023, Amazon laid off 27,000 employees in waves, echoing the current pattern.
Reasons Behind the Cuts
Amazon attributes the layoffs to a "culture shift" rather than immediate financial distress or AI displacement. Jassy, in recent earnings calls, emphasized reducing bureaucracy to foster innovation in a "world that's changing faster than ever." However, analysts point to AI as a key driver, with the company reallocating resources from legacy operations to generative AI and machine learning. "This generation of AI is the most transformative technology we’ve seen since the Internet," Amazon stated in prior announcements. Economic factors, including inflation and slower e-commerce growth, also play a role, as does competition from Microsoft Azure and Google Cloud in the cloud sector.
Employee Reactions and Support
Affected employees in the US will receive 90 days to seek internal roles, severance pay, and transitional benefits. In Europe, consultations with worker representatives are underway. The accidental email sparked panic on social media, with workers sharing screenshots and expressing frustration. "Changes like this are hard on everyone," noted AWS SVP Colleen Aubrey in the leaked message. Labor unions, including the Amazon Labor Union, decried the move. "Amazon made record profits, yet they're discarding workers like trash," said ALU president Chris Smalls. Former employees criticize the company's high-pressure culture, including "stack ranking" that fosters burnout.
Broader Economic Impact
The cuts reverberate through tech hubs like Seattle, where Amazon is slashing 2,100 jobs in Washington state alone, totaling over 5,400 local reductions since October. Local businesses brace for reduced spending, with real estate and retail sectors hit hard. Nationally, tech layoffs exceed 50,000 in early 2026, per Layoffs.fyi, amid a slowdown. "Layoffs up, hiring down," notes economist Julia Pollak. Internationally, impacts are felt in India and the UK, where unions demand better protections.
Stock Market and Analyst Response
Amazon's stock dipped 1.5% following the announcement but recovered amid optimism about efficiency gains. "These cuts should help margins," said Wedbush analyst Michael Pachter. AWS remains a profit driver, with net sales up 13% year-over-year in Q3 2025. However, the S&P 500 feels the pressure, as Amazon's moves signal broader industry maturation.
Criticisms and Challenges
Critics argue the layoffs mask deeper issues, including antitrust scrutiny from the FTC and worker safety concerns. Environmental groups highlight Amazon's carbon footprint from data centers. "Cost-cutting can't mask systemic issues," said a Greenpeace spokesperson. Senator Bernie Sanders called for stronger labor laws.
Future Plans and Investments
Amazon plans to invest heavily in AI, including partnerships and internal tools, while closing Amazon Fresh and Go stores to focus on delivery. Jassy remains optimistic: "We're committed to our employees and customers." But Galetti admitted potential future adjustments.
Conclusion
As Amazon streamlines, questions loom: Is this the end of mass cuts, or a new normal? For 27,000 families, the impact is immediate. The tech giant's trajectory will shape the industry, but repeated layoffs erode trust. In a cutthroat sector, no role feels secure.
