On Wednesday, January 28, Amazon announced another round of layoffs, cutting 16,000 employees—just three months after the company laid off 14,000 workers as part of a sweeping efficiency drive.
These decisions fit into a broader corporate trend: large companies are increasingly explicit about their ambition to do more with smaller teams. The reasons vary—from productivity gains driven by AI and overhiring during the post-pandemic period to straightforward cost-cutting amid persistent inflationary pressure. Amazon’s layoffs also illustrate a phenomenon some analysts describe as “permanent layoffs,” in which workforce reductions arrive in waves rather than as a single, comprehensive restructuring.
The current round will affect divisions that have yet to complete their restructuring after the October layoffs, according to a blog post by Amazon senior vice president Beth Galetti.
“Alongside these changes, we will continue to hire and invest in strategic areas and functions that are critical to our future. We are still in the early stages of each of our businesses, and there remains significant potential ahead,” Galetti wrote.