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Amazon Announces Major Layoffs Amidst AI Competition, Affects 16,000 Employees

KVIA•Wednesday, January 28, 2026 at 10:59 AM•CNN Newsource

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AI Summary

Amazon is set to lay off 16,000 employees, marking its second significant job cut in just three months as the company seeks to streamline operations and enhance decision-making speed in the competitive AI landscape. This reduction represents approximately 9% of Amazon's corporate workforce, which totals over 350,000 employees. The layoffs will begin immediately, with most affected employees given 90 days to find new roles within the company. Those not rehired will receive severance and additional benefits. CEO Andy Jassy has emphasized that these layoffs are aimed at improving efficiency rather than cutting costs, as Amazon faces stiff competition from tech giants like Microsoft and Google in the AI sector.

Key Details: • Layoffs commence immediately; most employees have 90 days to find new roles. • Severance pay and benefits will be provided to those not rehired. • Amazon's corporate workforce is over 350,000; layoffs affect about 9% of this group. • The company is also closing its Amazon Fresh and Amazon Go grocery businesses.

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People & Organizations

AmazonAndy JassyBeth Galetti

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