 "Amazon confirms 16,000 job cuts as part of major restructuring drive")
Amazon has officially confirmed that it is laying off around 16,000 employees across departments as part of an ongoing organisational restructuring that began in October.
The announcement comes just a day after the company accidentally leaked the news to some employees via an internal invite.
Amazon confirms fresh round of layoffs
In a blog post, Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, said the move aims to streamline operations and strengthen efficiency.
“This move is to strengthen our organisation by reducing layers, increasing ownership, and removing bureaucracy,” Galetti wrote. “While many teams finalised their organisational changes in October, other teams did not complete that work until now.”
The layoffs are part of a broader restructuring process that began late last year and are designed to make Amazon “leaner and more agile.”
To cushion the impact, Amazon said it will provide severance packages and transition support for affected employees. “Most US-based employees will have 90 days to look for a new role internally, though timing will vary internationally based on local requirements,” Galetti added.
Employees who are unable or unwilling to find new roles will receive severance pay, outplacement services, and health insurance benefits, depending on location and eligibility.
Despite the sweeping job cuts, Amazon stressed that hiring has not completely frozen. “We will continue hiring and investing in strategic areas and functions that are critical to our future. We’re still in the early stages of building every one of our businesses, and there’s significant opportunity ahead,” the company said.
This marks the second major layoff round within a year. In October 2025, Amazon reportedly cut around 14,000 jobs as part of the same restructuring effort. Combined, the two rounds of job cuts push Amazon’s total workforce reductions to over 27,000 positions in the last two years.
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View AllAmazon shuts physical Fresh and Go stores
Alongside the layoffs, Amazon has confirmed another significant shift in its retail strategy, the company will close most of its physical Amazon Go and Amazon Fresh stores, opting instead to focus on its Whole Foods Market brand.
In a statement, Amazon said the move aligns with its plan to consolidate grocery operations under one umbrella and focus on areas showing the strongest growth. While customers will still be able to order from Amazon Fresh online, the company will no longer operate physical Fresh or Go stores under their current branding.
“Customers will continue to enjoy the convenience of online grocery shopping through Amazon Fresh, but physical stores will transition or close as part of our retail simplification,” the company said.
The restructuring includes plans to expand Whole Foods Market, with Amazon announcing its intention to open more than 100 new Whole Foods stores over the next few years. Additionally, five new Whole Foods Market Daily Shop convenience-style stores are expected to open by the end of this year.
A memo sent to Amazon employees also highlighted the growth of Amazon Grocery, a new unified private label that now offers more than 1,000 items. The brand is set to expand significantly through 2026.
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