Amazon.com Inc. said Wednesday it is cutting approximately 16,000 corporate positions, marking the second massive wave of layoffs to hit the e-commerce giant in just three months.
The move is part of a broader “Project Dawn” initiative aimed at streamlining operations and integrating generative artificial intelligence (AI) into the company’s corporate framework.
But the announcement was marred by a significant internal communication breakdown. On Tuesday evening, an email mistakenly sent to staff at Amazon Web Services (AWS), the company’s lucrative cloud computing arm, warned employees they had already lost their jobs before official notifications were meant to be sent. The message, signed by Colleen Aubrey, senior vice president of applied AI solutions, prompted confusion and anxiety across offices in the U.S., Canada, and Costa Rica.
Beth Galetti, Amazon’s senior vice president of people eXperience and technology, framed the cuts as a necessary evolution. In a blog post, she noted the company is focused on “reducing layers, increasing ownership, and removing bureaucracy.”
“If you aren’t intentional about communication and delivery during layoffs, the foundation of trust and security is shattered,” Jennifer Schielke, CEO of a relationship-focused staffing and recruiting firm, said in an email. “Rebuilding a team in that environment is an uphill battle. If you aren’t intentional about caring over people, there is little reason for them to trust you. The road to recovery is better for all parties when communication is open, honest, and empathetic, even if when delivering bad news.”
While the cuts represent nearly 10% of Amazon’s corporate workforce and 1% of its worldwide employees, they follow a previous reduction of 14,000 roles in October. Amazon CEO Andy Jassy, who has led a rigorous cost-cutting campaign since 2021, previously signaled that generative AI would eventually reduce the need for certain corporate roles. However, he maintained in earlier statements that the primary driver is cultural, citing a need to trim a workforce that doubled in size during the pandemic-era shopping surge.
The layoffs come despite Amazon’s robust financial health. In its most recent quarter, the company reported profits of $21 billion, up nearly 40% from the same quarter a year ago, and revenue of $180 billion.
This “no hire-no fire” paradox echoes across the tech and logistics sectors. On Tuesday, UPS announced plans to cut 30,000 jobs, citing reduced volume from Amazon, while Pinterest Inc. confirmed it would lay off 15% of its staff to pivot resources toward AI.
U.S.-based employees affected by the cuts will have a 90-day window to apply for internal roles. Those unable to find new positions within the company will receive severance packages, outplacement services, and extended health insurance benefits.
Despite the workforce reduction, Galetti insisted that Amazon is not retreating. “We’ll also continue hiring and investing in strategic areas and functions that are critical to our future,” she stated.
Shares of Amazon rose slightly following the announcement, as investors reacted to the company’s continued focus on margin expansion and automation.
