Amazon May Lay Off 16,000 More Employees as AI-Driven Restructuring Accelerates in 2026

As 2026 begins, concerns over job security are once again rising across the global tech industry. According to reports, Amazon is preparing for another major round of layoffs, with nearly 16,000 employees potentially set to lose their jobs as early as next week. If confirmed, this would mark one of the largest workforce reductions in the company’s history.

The move is reportedly part of Amazon’s broader plan to eliminate around 30,000 positions, driven largely by organizational restructuring and the growing adoption of AI and automation.

Layoff Pressure Intensifies in Early 2026

A Reuters report indicates that Amazon finalized plans in 2025 to cut approximately 30,000 jobs. The first phase, which began in late 2025, reportedly saw about 14,000 roles eliminated, and that process is believed to be largely complete.

The upcoming phase could involve the remaining 16,000 positions, bringing the total number of layoffs in recent months close to the originally planned figure.

Layoffs Could Begin as Early as January 27

According to discussions on internal and corporate forums such as Blind and Reddit, employees have been informed by managers and senior leadership that the next round of layoffs may start on January 27, 2026. Some workers claim that employees currently on Performance Improvement Plans (PIPs) may receive advance notice or be prioritized in the process.

While Amazon has not officially confirmed the timeline, internal chatter suggests preparations are already underway.

Which Teams Are Likely to Be Hit Hardest?

Unlike previous rounds that focused heavily on retail and warehouse operations, this phase is expected to impact high-paying corporate roles. Reports suggest significant cuts may occur in the People Experience and Technology (PXT) division.

In addition, certain support and administrative roles within AWS could be reduced as Amazon reallocates resources toward AI development and data center expansion.

AI and Automation at the Core of Job Cuts

Amazon CEO Andy Jassy has repeatedly emphasized the need to reduce management layers and create a flatter organizational structure. The company is increasingly relying on AI-powered systems for hiring, performance evaluation, and internal operations.

As automation expands, employees are being asked to handle broader responsibilities with fewer resources—further accelerating job reductions across departments.