New Delhi: Global e-commerce major Amazon has announced plans to lay off around 16,000 employees as part of a cost-cutting exercise, marking its largest workforce reduction since 2023.
The decision was confirmed by the company’s senior vice-president Beth Galetti through a blog post issued on Wednesday.
Amazon said affected employees would be given a 90-day period to seek alternative roles within the company. Those unable to secure new positions will be offered severance pay along with benefits such as health insurance. The latest announcement follows an earlier round of layoffs in October, when the company cut around 14,000 jobs.
Industry experts said Amazon had significantly expanded its workforce during the Covid-19 pandemic as online shopping surged. However, changing economic conditions have now forced the company to take corrective measures.
Rising inflation in the United States, new tariff policies under President Donald Trump, and the growing impact of artificial intelligence have led several large corporations to slow down hiring. Data shows that only about 50,000 new jobs were created in the US in December, indicating a broader slowdown in the labour market.
