Amazon Lays Off Thousands as it Deepens its Use of AI

Amazon has announced another major round of job cuts as it continues to reshape its business around artificial intelligence. The company is laying off 16,000 corporate employees, marking the second wave of layoffs in just three months. This comes after 14,000 workers were let go in October, showing how fast and serious Amazon’s restructuring plans have become. 

The layoffs mainly affect corporate teams, including Prime Video, Amazon Web Services, and the human resources department. Amazon has said that warehouse and delivery workers are not part of the cuts. For employees in the United States who are affected, the company is offering a 90-day period to search for a new role within Amazon. Those who do not find another position will receive severance pay, health benefits, and help with job placement as they transition out of the company. 

These job cuts are not happening in isolation. Amazon is also closing more than 70 of its physical grocery stores under the Amazon Go and Amazon Fresh brands across the United States. Some of these locations will be turned into Whole Foods Market stores, a grocery chain Amazon bought in 2017 and has continued to expand. Together, the layoffs and store closures show a company moving away from certain traditional operations while focusing on new priorities. 

At the center of this shift is artificial intelligence. Amazon has been investing heavily in AI tools, especially generative AI, which can automate tasks, improve efficiency, and reduce costs. CEO Andy Jassy has previously explained that as AI becomes more widely used across the company, fewer corporate workers will be needed. In simple terms, technology is now doing work that once required large teams of people. 

Amazon’s move reflects a larger trend across the tech industry. Other companies such as Pinterest and Autodesk have also announced layoffs as they redirect money and staff toward AI development. In fact, more than 120,000 tech workers lost their jobs in 2025 as companies pushed harder into automation and AI-driven systems. 

The impact is spreading beyond tech as well. UPS recently announced plans to cut 30,000 jobs as it reduces deliveries linked to Amazon. This shows how decisions by large companies like Amazon can affect many other businesses and workers. 

While Amazon’s share price dipped slightly after the announcement, it remains up overall this year, suggesting that investors see AI-focused restructuring as a positive move. Still, for thousands of workers, the shift toward AI has come with a painful cost, highlighting the human side of rapid technological change. 

With more tech advances being championed by firms like D-Wave Quantum Inc. (NYSE: QBTS), the employment landscape could be revolutionized even further in the coming years. 

NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS 

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