Amazon will be cutting an additional 16,000 jobs in its ongoing effort to “strengthen our organization by reducing layers, increasing ownership and removing bureaucracy,” Beth Galetti, the company’s SVP of People Experience and Technology, shared in a letter to employees.
This latest round of cuts continues reduction-in-force efforts that began last October with the elimination of 14,000 roles. At the same time, UPS announced that it was planning to cut 30,000 jobs this year as well, part of its 18-month wind-down of its partnership with Amazon, previously its largest customer.
Combined Layoffs Represent 10% of Amazon Corporate Workforce
While 30,000 jobs sounds large, it’s a drop in the bucket of Amazon’s workforce, which currently numbers close to 1.6 million worldwide, the vast majority of which work in the company’s fulfillment and logistics centers. Still, the 30,000 roles being cut represent nearly 10% of Amazon’s corporate workforce, and as at many other companies right now, one of the largest instigators is AI.
“As we roll out more generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Amazon CEO Andy Jassy forewarned in a letter to employees back in June 2025. “It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
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This latest round of layoffs doesn’t mean Amazon intends to stop hiring, nor does it mean that layoffs like this will become the norm: “While we’re making these changes, we’ll also continue hiring and investing in strategic areas and functions that are critical to our future,” said Galetti. “Some of you might ask if this is the beginning of a new rhythm — where we announce broad reductions every few months. That’s not our plan. But just as we always have, every team will continue to evaluate the ownership, speed and capacity to invent for customers, and make adjustments as appropriate. That’s never been more important than it is today in a world that’s changing faster than ever.”
Most U.S.-based employees affected by the layoffs will be given 90 days to look for a new role within Amazon, and those who don’t find a suitable position, or choose not to look for one, will be given transition support.
UPS to Save $3 Billion by Reducing Amazon Volume
At the same time, UPS also announced that it would further reduce its workforce by 30,000 positions this year as part of the “glide-down” of its business with Amazon, a key piece of CEO Carol Tomé’s turnaround plan. The company said on its earnings call Tuesday that it expects to see a total of $3 billion in savings related to the Amazon unwind.
The ultimate goal is to reduce the volume of deliveries coming from Amazon by 50% in order to decrease UPS’s reliance on the retailer. The U.S. Postal Service also has taken steps in recent months to reduce its reliance on Amazon.
After reducing 48,000 positions last year, including hiring 15,000 fewer seasonal employes than in 2024, this year UPS anticipates it will be able to reduce operational hours by approximately 25 million hours due to the decline in Amazon volume, equating to a reduction of 30,000 operational positions. The reductions will be accomplished through natural attrition and a second round of voluntary separation offers for full-time drivers, UPS CFO Brian Dykes shared on the call.
