Amazon is initiating a massive workforce reduction today that is expected to eliminate approximately 16,000 corporate roles globally. This latest round of layoffs, which begins this morning, January 27, marks a significant escalation in the technology giant’s ongoing restructuring efforts. The impact is anticipated to be particularly severe for India-based teams, with reports indicating that offices in Bengaluru, Hyderabad, and Chennai will bear the brunt of the cuts.
Also read: Amazon to Lay Off 30,000 Employees in Major Job Cut
This move appears to be the second phase of a broader strategy to streamline operations. In October 2025, Amazon cut 14,000 white-collar positions, and current projections suggest the total reduction could reach 30,000 roles by mid-2026. While the company employs over 1.5 million people worldwide, these cuts are strictly targeting the corporate sector rather than warehouse or frontline operations. The divisions facing the highest risk include Amazon Web Services (AWS), Prime Video, and the People Experience and Technology (PXT) division, which functions as the company’s internal human resources arm.
The narrative surrounding these layoffs has shifted notably in recent months. While initial internal communications in late 2025 hinted at artificial intelligence being a driver for efficiency, CEO Andy Jassy has publicly pivoted to a different explanation. Jassy has explicitly stated that the reductions are “not really financially driven” and “not even really AI-driven” at this stage. Instead, he has pinned the decision on “culture.”
In recent earnings calls and internal addresses, Jassy argued that the company’s rapid expansion during the pandemic created excessive layers of management that have stifled innovation and slowed decision-making. He described this organizational bloat as a “bureaucracy tax” that prevents the company from operating with the agility of a startup. By removing these layers, Jassy claims Amazon can restore a culture of ownership where employees closer to the action can make decisions without navigating a maze of approvals.
However, industry analysts suggest that the distinction between “culture” and “AI efficiency” is thinner than the executive team admits. The aggressive restructuring of the HR and AWS divisions coincides with Amazon’s massive $35 billion investment in artificial intelligence infrastructure. As the company automates coding, debugging, and administrative tasks, the need for mid-level management and legacy support roles diminishes. The “culture” argument may simply be the corporate framing for a transition toward a leaner, more automated operational model.
For the Indian workforce, the timing is precarious. India has long been a hub for Amazon’s technical talent and operational support. The concentration of AWS and PXT teams in Indian metros makes them disproportionately vulnerable to these specific cuts. Employees on professional networks like Blind and LinkedIn have reported a tense atmosphere, with managers hinting at imminent notifications. Those currently on performance improvement plans are expected to be the first affected, followed by wider team restructuring.
The scale of this reduction is historic. If the total cuts reach the projected 30,000 mark by mid-2026, it will surpass the 27,000 jobs Amazon eliminated during the 2022-2023 downturn. It signals a permanent shift in how Big Tech operates, moving away from headcount growth as a metric of success and toward revenue per employee efficiency.
As notifications land in inboxes today, the focus will remain on how Amazon manages the exit process. In previous rounds, the company offered a 90-day payroll window for affected employees to find internal transfers or new jobs. Whether that same cushion will be extended to the thousands of Indian employees losing their livelihoods today remains to be seen. The coming weeks will reveal whether this “cultural reset” creates the agile startup Jassy envisions or simply hollows out the institutional knowledge that built the company.
