Amazon is preparing to execute a second round of layoffs in its corporate structure that could affect up to 14,000 office employees. According to sources cited by Reuters, this may occur as soon as Tuesday, January 27, 2026. The move would impact several of the company’s most visible units, including Amazon Web Services (AWS), along with divisions of retail, Prime Video, and the human resources area, internally called People Experience and Technology.
The action follows a first wave announced in October 2025, when Amazon cut around 14,000 corporate jobs. If the total restructuring plan is completed, the overall figure could approach 30,000 departures in two phases—an adjustment representing nearly 10% of its corporate workforce. Still, in terms of total employment, the impact would be smaller: Amazon has approximately 1.58 million employees worldwide, the majority of whom are in logistics hubs and warehouse operations.
AWS Back in Focus: The Adjustment Extends to the “Star” Cloud Business
That AWS reappears on the list of affected areas is noteworthy. Cloud business remains one of Amazon’s main profit sources, and simultaneously, a domain where cost efficiency is constantly scrutinized. In July 2025, the company already implemented cuts in AWS affecting at least hundreds of employees, as reported by Reuters, amid a broader reorganization aimed at internal optimization and automation tools, including AI.
This time, the specific scope isn’t finalized. Sources caution that details could change, and Amazon itself, via a spokesperson, declined to comment on the plan. The clear intention, however, seems to be that this second wave would be similar in size to the October layoffs, roughly up to 14,000.
“It’s Not About Money or AI”: Andy Jassy’s Narrative on Bureaucracy and Layers
One of the most striking aspects of this episode is the contrast between the corporate narrative and the public explanation from CEO Andy Jassy. Following the October layoffs, Amazon linked the process to the arrival of a new generation of Artificial Intelligence, which, according to an internal communication cited by Reuters, would be “the most transformative technology since the internet” and enable companies to innovate more rapidly.
However, during a Q3 earnings call, Jassy clarified the focus: he stated that the layoffs “are not really driven by financial reasons” and “are not even primarily driven by AI.” His reasoning was different: reducing bureaucracy. “You end up with many more people and layers than you had before,” he explained, referring to a management structure that, in his view, has become increasingly cumbersome over time.
Jassy’s stance doesn’t eliminate AI’s role at the core of the issue but reorders priorities. On one hand, he has acknowledged on multiple occasions that efficiency gains from AI are likely to reduce corporate headcount in the medium term. On the other, he emphasizes that the current restructuring mainly concerns how work is organized: fewer layers, less friction, faster decision-making.
A Calendar That Adds Internal Pressure
The timing of this new phase also has operational implications. Reuters reports that employees affected in October were informed they would remain on the payroll for 90 days, with the option to seek internal redeployment or external alternatives. That period expires on Monday, January 26, 2026, so the second wave appears to be scheduled immediately afterward, almost “back-to-back” with the previous one.
This creates a particularly delicate scenario of uncertainty for corporate teams. It’s not just about the layoffs themselves but also about the “wave effect”: two similar-sized rounds in quick succession tend to impact morale, project planning, and retention of key talent.
Layoffs in the AI Spending Era: High Benefits but Organizational Discipline
Paradoxically, this restructuring coincides with strong financial results. In Q3 2025, Amazon reported a net profit of $21.2 billion, a recent benchmark of the company’s performance. During that quarter, Amazon also highlighted advances related to its AI strategy, and sector-wide, pressure to adopt automation and AI agents has become a constant among major tech firms.
In other words, Amazon is cutting back on corporate layers while maintaining a narrative of investment and technological acceleration. The common thread, as CEO Jassy repeatedly emphasizes, is efficiency: less bureaucracy, fewer layers, and a sharper focus on execution. The cost is reflected in reconfigured teams and the career paths that are shaped or constrained by the organizational chart.
A Historic Adjustment Within Amazon
If the full plan of 30,000 corporate layoffs is executed, Amazon would have undergone its largest restructuring in history, surpassing the 27,000 layoffs in 2022. Although the company remains a global employment giant, this reorganization’s focus is on its “brain”—management, support functions, cross-functional units, and product areas where redundancies and layers have accumulated.
In the short term, the focus is on the timeline set for late January. In the medium term, the broader thesis spreading through Silicon Valley is that AI not only creates new business lines but also forces a reshaping of the workforce that enables those lines to exist.
Frequently Asked Questions
When could Amazon’s layoffs start, and how many people would be affected?
According to Reuters, they could begin Tuesday, January 27, 2026, affecting up to 14,000 corporate roles, in a second wave similar to the one in October.
Which Amazon areas are at risk, and why is AWS on the list?
The affected units include AWS, retail, Prime Video, and human resources (People Experience and Technology). AWS is on the list because of its strategic importance and because it already underwent layoffs in July 2025 as part of a reorganization.
Does Amazon attribute these layoffs to Artificial Intelligence?
Amazon has linked previous layoffs to AI in internal communications, but Andy Jassy publicly maintains that the current restructuring is not primarily financial or AI-driven, but mainly aimed at reducing bureaucracy and management layers.
How does a total of 30,000 layoffs compare to Amazon’s overall size?
Even with 30,000 departures, this represents just a fraction of Amazon’s 1.58 million employees. The impact is concentrated on the corporate workforce, where it would amount to about 10%.