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Amazon Layoffs 2026: How many employees are affected? Key reasons behind job cuts explained

Amazon is reportedly planning a second round of layoffs starting January 27, 2026, potentially affecting 16,000 employees. Cuts are expected in high-salary corporate roles, PXT, and AWS teams as the company ramps up AI and automation, following previous reductions in 2023 and 2025.

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Amazon Layoffs 2026: How many employees are affected? Key reasons behind job cuts explained
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Amazon could be preparing for another major round of job cuts, with internal chatter suggesting that thousands of employees may be impacted starting January 27, 2026. While the company has not made any official announcement, discussions on employee forums and recent regulatory filings indicate that a second phase of workforce reductions may be imminent.

Background: Earlier Job Cuts and New Estimates

Back in October, reports had suggested that Amazon was planning to eliminate close to 30,000 roles over multiple phases. The first round reportedly accounted for roughly 14,000 positions, which appears to have already taken place. Now, sources familiar with internal conversations claim that an additional 16,000 jobs could be at risk in the coming weeks, potentially taking total recent layoffs close to the earlier estimate.

If these reports prove accurate, the new cuts would come on top of the 27,000 roles Amazon eliminated in 2023, making this one of the largest workforce reduction periods in the company’s history.

Employee Forums Signal Layoff Preparations

Anonymous posts from individuals claiming to be Amazon employees on platforms such as Blind and Reddit suggest that managers and senior leaders have begun informally alerting teams about possible job losses. Some posts indicate that employees placed on performance improvement plans (PIPs) may receive early notifications ahead of broader announcements.

Amazon has not confirmed the authenticity of these claims or the timing of any potential layoffs.

WARN Notices Hint at US Layoffs

A recent media report indicated that 1,000 to 2,000 Amazon employees may have already received WARN notices, which are required under US law when large-scale layoffs are planned. These notices reportedly point to job separations scheduled around January 26. However, analysts believe the actual number of affected employees could be significantly higher.

Teams Likely to Be Affected

Unlike earlier layoffs that targeted operational roles, the upcoming reductions are expected to focus on high-cost corporate positions. Amazon’s People Experience and Technology (PXT) division, its internal HR arm, is widely believed to be among the most affected, as the company increases reliance on automation for hiring and employee management.

Cuts are also expected within Amazon Web Services (AWS). Although AWS remains profitable, slower growth compared to competitors has reportedly prompted leadership to reduce support and administrative roles while prioritising spending on generative AI and data centre expansion.

AI, Automation and Leaner Workforce

Amazon CEO Andy Jassy has consistently emphasised the need to streamline operations, reduce management layers, and improve efficiency. Over the past year, employees have seen team mergers, role eliminations, and higher productivity expectations, trends closely linked to the company’s growing use of AI-driven tools.

As automation reshapes Amazon’s internal structure, the company appears to be moving toward a leaner workforce designed to support its long-term technology ambitions.

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