NEW YORK — Amazon cut 16,000 office jobs on Wednesday, January 28, 2026, as the retail giant changes its business plans to focus more on the artificial intelligence (AI) market.

Company leaders said the layoffs will help Amazon run more smoothly. By having fewer layers of management, the company hopes to make decisions faster and adapt to the rapidly changing AI industry.

These cuts come after Amazon eliminated 14,000 office jobs in late October 2025. Together, these two rounds of layoffs represent about 9% of Amazon's total office staff. CEO Andy Jassy said the changes are part of a goal to help the large company act more like a fast-moving startup.

The Role of Artificial Intelligence

Jassy said the company will eventually need fewer workers for certain jobs. This is because of the use of "AI agents" and generative AI—technology that can create new content like text and images.

He described these AI agents as software programs designed to handle tasks automatically. Jassy noted that he expects every type of business to eventually use billions of these agents to work more efficiently.

While Amazon is cutting these office jobs, a report from the investment firm Vanguard suggests a different trend for other workers. The firm found that jobs most likely to be affected by AI automation are actually growing faster than other jobs in the economy.

Grocery Store Closures

The job cuts come just one day after another major change to Amazon's retail business. On Tuesday, January 27, 2026, the company announced it would close its Amazon Go and Amazon Fresh grocery chains. Moving forward, the company plans to focus its food business specifically on the Whole Foods brand.

Support for Employees

Workers affected by the layoffs have 90 days to apply for other open positions within Amazon. Those who do not find a new job will receive benefits and severance pay, which is money given to employees when they are laid off.

Despite the job cuts, Beth Galetti, Amazon’s head of human resources, said the company will continue to hire for roles that are important to its future.