Amazon Announces Major Workforce Reduction as Part of Organizational Restructuring

Amazon has announced plans to cut approximately 16,000 roles across the company as part of an ongoing effort to reduce organizational layers and bureaucracy, according to a memo from Beth Galetti, Senior Vice President of Human Resources at Amazon. This announcement comes after the company implemented cuts in October 2025 and represents a significant restructuring effort within the e-commerce and cloud computing giant.

In her memo, Galetti stated: "I want to let you know that we're making additional organizational changes across Amazon that will impact some of our teammates." The company has not yet specified which departments or regions will be most affected by these cuts, but the move is part of a broader strategy to streamline operations and improve efficiency.

The timing of this announcement is notable, as it follows a period of significant growth for Amazon during the pandemic years, followed by a more cautious approach to hiring and expansion as economic conditions have shifted. The company has been under pressure to demonstrate improved profitability and operational efficiency to investors.

This latest round of cuts adds to the approximately 18,000 positions Amazon eliminated in January 2023 and the additional reductions made in October 2025. The cumulative effect of these workforce reductions represents a significant shift in Amazon's employment strategy after years of aggressive hiring.

Industry analysts suggest that the cuts are part of a broader trend among tech companies to right-size their operations after the rapid expansion during the pandemic. Amazon's focus on reducing "organizational layers and bureaucracy" indicates a push toward flatter organizational structures and more streamlined decision-making processes.

The announcement has already sparked discussions on various forums and social media platforms, with employees and industry observers speculating about the potential impact on Amazon's operations and culture. Some have noted that the cuts could affect Amazon's ability to innovate and compete in key areas such as cloud computing, artificial intelligence, and logistics.

Amazon's stock price has shown resilience in the face of these announcements, with investors generally viewing the restructuring efforts as a positive step toward improved operational efficiency. However, the long-term impact on the company's growth trajectory and competitive position remains to be seen.

As the company moves forward with these changes, it will be closely watched by other tech giants and industry observers for insights into how large organizations are adapting to the current economic environment and evolving market conditions.