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Amazon Layoffs Hit 16 Thousand Employees Just Before Quarterly Earnings, Reflecting Investment in AI.
Amazon announced on Wednesday (01/28/26) the layoff of around 16 thousand employees from its corporate structure, just days before releasing its fourth-quarter financial results.
The decision, communicated internally via email, comes just before the earnings conference scheduled for February 5 and reflects the company’s strategy to cut costs, streamline hierarchies, and redirect investments toward artificial intelligence and cloud computing, especially within Amazon Web Services.
The measure primarily affects employees in the United States, who will have up to 90 days to seek internal relocation before a permanent layoff.
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If they do not find new positions, employees will receive severance pay, job placement assistance, and additional benefits according to local regulations.
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Cut Announced Before Earnings Repeats
The timing of the layoffs is noteworthy because it follows a recent pattern from Amazon. In October 2025, the company laid off around 14 thousand employees just two days before releasing its third-quarter results.
At that time, the financial report already included an impact of US$ 1.8 billion in severance costs.
Now, once again, the cuts are occurring before the financial disclosure, reinforcing the signal of financial discipline and structural reorganization.
The company did not specify whether the layoffs affect employees in Brazil or other countries outside the United States.
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Advance Email Creates Tension Among Employees
Before the official announcement, an erroneously sent email heightened internal anxiety. On Tuesday (01/27/26), AWS employees received a message mentioning “organizational changes” and an internal project called “Project Dawn.”
The content hinted at cuts and caused confusion as it was quickly followed by the cancellation of a scheduled meeting to discuss the topic.
According to Reuters, the email indicated that employees in the United States, Canada, and Costa Rica had already been informed about the layoffs, which was later corrected by the company.
Official Justification and Efficiency Discourse
In a statement signed by Beth Galetti, senior vice president of People Experience and Technology, Amazon stated that the layoffs are part of an ongoing effort to reduce hierarchical layers and eliminate bureaucracy.
“I recognize that this is difficult news, and that’s why I’m sharing what is happening and why,” wrote Galetti.
According to her, the company will continue hiring in strategic areas, even with the reduction of corporate positions.
Structural Transformation and AI Advancement
For experts, Amazon’s move reflects a profound change in the working model of large technology companies.
Economist Roberto Kanter, a professor at Fundação Getulio Vargas, believes that the layoffs are directly linked to the replacement of administrative functions with automated systems.
“Amazon’s recent move is tied to a deeper structural transformation: the replacement of operational, administrative, and intermediary tasks with artificial intelligence,” explains Kanter.
He noted that activities such as data consolidation, control, and reporting are losing economic relevance as AI takes over these functions more efficiently.
Financial Impact of Recent Cuts
The numbers from the third quarter of 2025 help quantify the effect of these decisions. Amazon reported net sales of US$ 180.2 billion, a 13% increase compared to the previous year.
However, the operating profit of US$ 17.4 billion was pressured by layoff costs and a legal settlement with the Federal Trade Commission.
Without these extraordinary charges, operating profit would have reached US$ 21.7 billion, highlighting the profitability gain of a leaner structure.
AWS Grows and Concentrates Investments
While reducing corporate positions, Amazon is increasing investments in cloud and AI. AWS reported 20% growth in the last quarter, with US$ 33 billion in sales.
CEO Andy Jassy highlighted the role of artificial intelligence in the company’s strategy.
“We continue to see strong momentum and growth across Amazon as AI drives significant improvements in every corner of our business,” he stated.
Additionally, the company reported adding over 3.8 gigawatts of power capacity to support the expansion of its data centers.
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