Reports indicate that Amazon is gearing up for another round of corporate job cuts, with layoffs potentially starting next week. The company had previously laid off 14,000 workers globally in October and hinted at the possibility of more cuts in 2026. Stay tuned for updates as we await Amazon’s official statement on the matter.
Amazon is preparing for another round of corporate job cuts next week, according to a report from Reuters on Thursday. Bloomberg also reported that layoffs could begin next week. We reached out to Amazon for comment.
Previous Layoffs and Future Plans
Amazon laid off about 14,000 workers globally in October. The company indicated that more layoffs could occur in 2026 while it would continue to hire in key strategic areas.
Speculations and Company Response
There was speculation that the cuts were tied to automation or AI-related restructuring. Amazon and other tech giants including Microsoft have trimmed headcount while investing heavily in AI infrastructure. And software development engineers made up the largest group of employees affected by the layoffs in Washington state last year, amid the rise of AI coding tools.
CEO Insights and Strategic Shifts
Amazon CEO Andy Jassy also told employees in June that he expected Amazon’s total corporate workforce to shrink over time due to efficiency gains from AI.
Financial Performance and Market Expectations
Amazon reports its latest quarterly earnings on Feb. 5. The company’s stock underperformed relative to the “Magnificent Seven” tech giants last year. Some analysts predict that Amazon’s cloud unit will help boost the stock as AI demand rises.
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