Amazon shifts retail strategy as it cuts 16,000 corporate roles

Amazon has announced it is cutting 16,000 jobs across the company. This major workforce reduction follows a previous round of layoffs in October, during which the e-commerce company laid off 14,000 people. The timing of the announcement comes just before Amazon is set to publish its Q4 2025 financial results next week. According to the company’s Q3 2025 filings, Amazon had a total headcount of 1.57 million employees and had registered single-digit growth in the five quarters prior to that reporting period.

In a letter to employees, Beth Galetti, Amazon’s Senior VP of People Experience and Technology, explained that the layoffs were made for “reducing layers, increasing ownership, and removing bureaucracy.” Galetti noted that the second round of large layoffs within three months occurred because several teams across the company had not yet finished their restructuring. Addressing internal concerns, she stated that the company is not trying to create a pattern of large layoffs every few months, though every team will continue to evaluate its capacity to invent for customers and make adjustments as appropriate. Despite the job cuts, Galetti noted that the company will continue to hire in strategic areas.

Alongside the corporate restructuring, Amazon is shifting its physical retail strategy. On Tuesday, the company announced it is closing its physical Amazon Go and Amazon Fresh stores. The closures represent a strategic pivot to concentrate on increasing capacity for same-day grocery delivery. Instead of continuing with the Amazon Go and Amazon Fresh brands, the company plans to expand the footprint of its Whole Foods grocery subsidiary, with plans to open 100 new Whole Foods stores over the next few years.

These workforce adjustments reflect a longer-term outlook previously outlined by leadership. Amazon CEO Andy Jassy indicated in a prior memo that the company’s corporate workforce will see a reduction in the next few years. Jassy noted that because of artificial intelligence, the company will require fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.

Why it matters

Amazon is conducting a second round of large layoffs within three months, citing a need to reduce layers and bureaucracy, while simultaneously shifting its physical retail strategy away from Amazon Go and Amazon Fresh toward Whole Foods expansion.