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Friday, January 16, 2026

Amazon Layoffs Hit Engineers Hardest in Company’s Biggest Job Cuts

Key Takeaways

  • Amazon’s 14,000 corporate job cuts disproportionately hit engineers, with nearly 40% of roles eliminated in key states being engineering positions.
  • This marks Amazon’s largest layoff round in its 31-year history, part of a broader tech industry trend.
  • CEO Andy Jassy cites organizational culture, not AI or finances, as the primary driver behind the restructuring.

Amazon’s recent workforce reduction of approximately 14,000 corporate roles has hit engineering teams hardest, according to newly filed WARN documents. State filings reveal engineers bore the brunt of cuts across New York, California, New Jersey, and Washington.

Engineering Roles Hit Hardest

Recent Worker Adjustment and Retraining Notification filings show nearly 40% of over 4,700 job cuts in these states were engineering positions. Mid-level software engineers (SDE II) were disproportionately affected. These filings represent only part of the total 14,000 layoffs announced last month, as reporting requirements vary by state.

Amazon’s Largest Ever Layoffs

This workforce reduction marks Amazon’s steepest cuts in its 31-year history. The move aligns Amazon with other tech giants that have slashed jobs despite strong profits. Industry-wide, nearly 113,000 positions have been eliminated across 231 tech companies in 2025, continuing a post-pandemic trend of belt-tightening.

AI and Efficiency Pressures

While Amazon insists artificial intelligence was not the main cause for layoffs, the company is actively shifting resources toward AI. CEO Andy Jassy has predicted corporate headcount will shrink in coming years as efficiency gains from AI take hold.

Jassy has been pushing to reshape Amazon’s culture into what he calls “the world’s largest startup,” urging teams to operate leaner by cutting bureaucracy.

“The announcement that we made a few days ago was not really financially driven, and it’s not even really AI-driven, not right now at least,” Jassy said during the company’s quarterly earnings call. “It really — it’s culture.”

“And if you grow as fast as we did for several years, the size of businesses, the number of people, the number of locations, the types of businesses you’re in, you end up with a lot more people than what you had before, and you end up with a lot more layers,” Jassy explained.

Gaming, Ads and Experimental Units Impacted

WARN filings revealed significant cuts beyond engineering. Gaming divisions were particularly hard hit, with game designers, artists, and producers comprising over a quarter of layoffs in Irvine and 11% in San Diego. Amazon is halting much of its work on big-budget MMO titles, including a planned Lord of the Rings game.

Experimental technology units behind Amazon Lens and Lens Live were heavily impacted, particularly in Palo Alto. In New York, more than 140 ad sales and marketing roles were eliminated, representing about 20% of the 760 positions cut there. Over 500 roles across various experimental units were eliminated, accounting for more than 10% of total cuts.

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