Amazon is laying off 16,000 employees in its second major reduction in three months. The company says the cuts will speed decision-making.

Beth Galetti, Amazon’s senior vice president of people, explained, “We’ve been working to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy.”

Previously, in late October, Amazon cut 14,000 corporate positions. CEO Andy Jassy wants the company to operate like a nimble startup and adapt quickly to AI developments.

Currently, Amazon employs over 350,000 corporate workers, making it America’s second-largest private employer after Walmart. Together, the recent layoffs reduce about 9% of its office staff.

Galetti stressed that layoffs won’t become routine. Instead, the company will focus on roles that improve ownership, speed, and innovation. Moreover, Amazon will hire strategically for positions critical to its AI-driven future.

The layoffs start Wednesday. Affected employees will have 90 days to seek internal roles. If they are not rehired, Amazon will provide severance pay and additional benefits. Notably, an internal memo announced the layoffs Tuesday night, before the blog post went live Wednesday.

In addition, Amazon plans to close its Amazon Fresh and Amazon Go stores. Meanwhile, the company will focus more on Whole Foods as part of its retail strategy.

CEO Jassy highlighted AI’s impact on the workforce. He said AI agents could reduce some positions while creating new types of jobs. Jassy noted, “Many of these agents have yet to be built, but make no mistake, they’re coming, and coming fast.”

Reports suggest AI has not yet caused widespread job losses. Vanguard found that jobs exposed to AI are growing faster than other occupations. However, some companies cut roles where AI improves efficiency or automates tasks.

Finally, Amazon competes with Microsoft, Google, Meta, OpenAI, and others in the AI race. Galetti emphasized that the layoffs aim to increase efficiency and agility, not mainly reduce costs.

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