Amazon Prepares to Lay Off Around 16,000 Employees with Indian Teams Severely Affected

Global e-commerce and technology giant Amazon is set to begin another significant round of corporate layoffs beginning January 27, 2026, with up to 16,000 employees expected to be affected worldwide.

The restructuring marks one of the largest employment shifts undertaken by the company in recent years and comes at a time when Amazon is reevaluating its long-term operational framework amidst evolving global market conditions, competition in advanced technologies, and rising automation integration across its business lines.

The latest round of layoffs follows months of internal reviews and resource assessments completed during the final quarter of 2025. Company documents circulated to division heads indicated an increased emphasis on consolidating corporate functions, reducing overlapping managerial roles, and redirecting investment toward divisions showing stronger growth indicators.

Markets had been anticipating a workforce adjustment after Amazon reported moderated year-end revenue growth and rising internal operational expenses, prompting leadership to accelerate cost and efficiency measures entering 2026.

Scope of Layoffs: Numbers, History and Context

The fresh round of reductions follows an earlier wave in October 2025, when Amazon eliminated approximately 14,000 corporate roles during its first major restructuring phase.

With the current round expected to affect around 16,000 additional employees, total workforce reductions within an 18-month period could approach 30,000 corporate staff, placing this among the largest restructuring efforts undertaken by the company in its history.

While Amazon’s global workforce still stands at over 1.57 million employees, the layoffs target the corporate segment of roughly 350,000 white-collar staff, including engineers, business strategists, analysts and management roles.

Leadership has reiterated that these cuts are intended to streamline decision-making processes, reduce structural redundancies and ensure corporate functions are aligned with Amazon’s revised growth priorities.

Departments and Regions Affected

Internal briefings indicate that the layoffs will span several major business units, including:

• Amazon Web Services (AWS)

• Prime Video and entertainment units

• Retail and global business operations

• People Experience and Technology (PXT), Amazon’s HR and corporate operations division

The geographical spread of the layoffs is broader than in previous restructuring cycles. India, one of Amazon’s largest corporate hubs, is expected to face some of the most significant reductions.

Offices in Bengaluru, Hyderabad and Chennai may see cuts across cloud services, engineering teams, automation support divisions and regional corporate operations.

Early notices have reportedly been communicated to certain teams, with detailed role eliminations expected to unfold over the coming week. Employees in overlapping or non-critical corporate functions are likely to be prioritised during the review.

Strategic Drivers Behind the Decision

Amazon leadership has underscored that the restructuring is part of a longer-term pivot rather than a response to short-lived financial pressure.

CEO Andy Jassy has highlighted the company’s focus on high-growth segments including AI infrastructure, AWS modernization, robotics, logistics automation and advertising technology.

Advancements in AI-led process automation have reduced the need for large corporate layers, while post-pandemic shifts in consumer spending patterns have encouraged Amazon to optimize resources and strengthen divisions with stronger revenue trajectories.

Analysts note that Amazon’s restructuring aligns with broader industry trends, as major technology firms tighten corporate structures after years of aggressive expansion.

Employee and Market Reactions

The upcoming layoffs have generated concern across Amazon’s global corporate workforce, particularly in India, where thousands of employees remain uncertain about their roles.

Internal forums and professional networking platforms show increased discussion around job stability, with employees citing limited clarity on team-level impacts and minimal formal communication beyond high-level leadership memos.

In the U.S. and Europe, employees have reported heightened pressure, accelerated deadlines and workflow freezes in teams believed to be under review.

HR teams have begun preparing transition documentation, and managers have been asked to submit updated organisational assessments—often a precursor to layoffs. Recruiters have also reported temporary freezes on non-essential roles and reviews of pending offers.

Financial markets reacted with cautious optimism. While Amazon’s stock showed minor fluctuations, analysts believe improved cost efficiency and sharper business focus could strengthen long-term investor sentiment.

Conclusion

Amazon’s decision to lay off approximately 16,000 corporate employees marks a defining moment in its global restructuring strategy.

With major business units and international hubs, including India, facing significant impact, the coming days will shape the company’s corporate trajectory.

Leadership maintains that the reductions are essential to reinforcing operational efficiency, accelerating innovation and sustaining competitiveness in a rapidly evolving technology landscape.

As implementation unfolds, attention will focus on workforce transitions, employee support programs and role realignments, while the industry closely watches whether Amazon’s revised structure delivers gains in productivity and long-term growth aligned with AI, cloud infrastructure and advanced automation.