Amazon Lays Off 16,000 Employees: Emphasis on 'Ownership' and 'Bureaucracy'

Tech giant Amazon has initiated another wave of layoffs. The company announced that approximately 16,000 more employees will be laid off as part of its effort to 'increase ownership' and 'reduce bureaucracy' in its organizational structure. This move follows the cuts in October last year that affected 14,000 white-collar workers.

Signals of Cultural Transformation and Uncertainty

Beth Galetti, Amazon's Senior Vice President of People Experience and Technology, published a blog post on the matter. When asked whether such large-scale layoffs would become routine, Galetti responded, "That's not our plan." However, she indicated the continuity of organizational changes by stating, "But as always, each team will continue to evaluate its capacity for ownership, speed, and innovation for customers and make appropriate adjustments."

In her statement, Galetti also emphasized that the company continues to invest in and hire for strategic areas that are still 'critical' for its future. Analysts suggest that artificial intelligence is at the forefront of these areas. Indeed, as we detailed in our news titled Amazon is Closing 16,000 Job Positions, Shifting Resources to Artificial Intelligence, the company's resource allocation towards AI is remarkably significant.

The Relationship Between Artificial Intelligence and Workforce

Amazon CEO Andy Jassy, during an investor meeting last October, claimed that the primary reason for the layoffs was not financial pressures or artificial intelligence, but rather a matter of 'culture.' However, in a blog post published last summer, Jassy explicitly stated that with the widespread adoption of AI tools across the company, they expect a reduction in the total workforce.

This situation shows that the transformation in the tech sector is not unique to Amazon. For example, as we reported in our news ASML Reached Record Levels with AI Demand, while AI demand drives some companies to record growth, it also brings workforce restructuring, as seen in our news titled ASML Announced Record Profits with AI Demand, Will Close 1700 Job Positions.

Performance and Future Plans

Despite all these layoff news, Amazon's business performance remains strong. The company announced that sales reached $180.2 billion in the quarter ending September 30, a 13% increase. The financial results for the last quarter of 2025 will be announced next week.

Leaders of other technology companies are also talking about similar transformations. For instance, in our analysis titled Logitech CEO: Costs and the AI Opportunity, we discussed how companies are trying to balance cost control with AI investments.

Amazon stated that affected employees in the US will have time to find new roles within the company, and those who cannot or choose not to will receive a severance package. As detailed in our news Amazon is Closing 16,000 Job Positions with its AI Focus, the impact of this AI-focused transformation on the labor market is being closely monitored.