Amazon confirmed 16,000 additional corporate job cuts today, completing a reduction of approximately 30,000 positions since October 2025, while facing mounting allegations that American workers have been disproportionately affected compared to H-1B visa holders. The company left open the possibility of further workforce reductions.

Reuters first reported last week that Amazon was planning a second round of job cuts as part of a broader goal under CEO Andy Jassy to reduce bureaucracy and abandon underperforming businesses. According to Beth Galetti, Amazon's top human resources executive, the cuts were necessary to strengthen the company by "reducing layers, increasing ownership, and removing bureaucracy."

Employee allegations surface on social media

Social media posts from self-identified Amazon employees have sparked controversy over the demographic composition of recent layoffs. A Reddit post shared on the r/AmericanTechWorkers subreddit claimed that during two rounds of layoffs, only American employees on a particular team were terminated while H-1B visa holders retained their positions.

"I was on a team of 8 senior developers with all of us around the same tenure," the post stated. "They laid off 3 of us... and it just so happened we were all the Americans." The author questioned why companies are allowed to lay off American workers while retaining H-1B employees.

The original post was reportedly removed by moderators from the r/amazonemployees subreddit, though screenshots and archived versions continued circulating across multiple platforms. LinkedIn discussions amplified the claims, with industry professionals sharing similar anecdotal experiences from their teams.

H-1B data shows Amazon as top petitioner

U.S. Citizenship and Immigration Services data for fiscal year 2025 shows Amazon Com Services LLC approved 13,265 H-1B beneficiaries, ranking first among all employers nationwide. Meta Platforms Inc ranked second with 6,294 approvals, while Microsoft Corporation placed third with 6,258 approvals.

The H-1B program allows U.S. employers to temporarily employ foreign workers in specialty occupations that require theoretical or technical expertise. According to the Department of Labor, the intent of H-1B provisions is to help employers who cannot otherwise obtain needed business skills and abilities from the U.S. workforce.

Amazon employs approximately 1.58 million people globally, with the majority working in fulfillment centers and warehouses. The 30,000 corporate job cuts represent nearly 10% of Amazon's corporate workforce and mark the largest reduction in the company's three decades of operation, surpassing the 27,000 positions eliminated between late 2022 and early 2023.

Scope of January 2026 layoffs

The full scope of the cuts could not be learned, but employees from multiple Amazon Web Services units, the Alexa voice assistant, Prime Video, devices, advertising, and last mile delivery indicated online and in communications that they had been affected. Additional impacted roles included those in Kindle and supply chain optimization.

Amazon mistakenly sent an email on January 27 appearing to refer to the layoff plan as "Project Dawn" to some Amazon Web Services staff, unsettling thousands of workers before the official announcement. The company began corporate job cuts on January 27 by announcing plans to close its remaining Fresh grocery stores and Go markets, ending years of attempts to make those physical retail formats profitable.

Amazon also discontinued Amazon One, its palm-scanning biometric payment system launched with significant promotional investment. These closures represented high-profile experiments the company decided to abandon as part of its operational streamlining efforts.

AI automation cited as workforce factor

The job cuts underscore how artificial intelligence is changing corporate workforce dynamics. Significant improvements in AI assistants are helping enterprises execute duties from routine administrative tasks to complex coding problems with rapid speed and precision, driving widespread adoption across the technology industry.

Jassy stated last summer that rising use of AI tools would mean more automation of duties, leading to corporate job losses. Salesforce CEO Marc Benioff disclosed in July 2025 that AI agents perform 30% to 50% of all work within his company, resolving 85% of customer service inquiries.

Executives at the World Economic Forum's annual meeting in Davos stated last week that while jobs would disappear, new ones would spring up. Two executives told Reuters that AI would be used as an excuse by companies planning to cut jobs anyway.

Tech giants including Amazon, Facebook-parent Meta Platforms, and Microsoft sharply ramped up hiring during the COVID-19 pandemic demand surge and have lately been restructuring. Amazon has been investing in AI-powered advertising infrastructure, including the November 2025 launch of Ads Agent for campaign management automation.

Workforce control dynamics emerge in discussions

Forum discussions revealed concerns about workforce control dynamics related to visa status. Multiple commenters noted that H-1B visa holders have limited ability to switch employers without re-triggering expensive and time-consuming application processes, potentially creating what some described as "bonded labor" conditions.

"People on H1B are tied to the company," one Reddit user wrote. "They can't move around as much without re-triggering the painful bureaucratic expensive application process. This results in a docile group of folks who are soldiers and would just follow orders to stay employed."

However, Amazon compensation structures do not differentiate based on visa status. Employees at the same level receive equivalent pay within established ranges regardless of immigration status. The company actually incurs additional costs for H-1B employees through legal fees, visa application expenses, and ongoing renewal processes.

Several forum participants noted that in their organizations, H-1B visa holders were disproportionately affected by layoffs, contradicting the narrative that emerged from other teams. "In my team someone who just got promoted a month ago, another member who just joined about 3 months ago and a tenured member with solid technical skills got laid off," one employee wrote, noting the difficulty in identifying clear patterns.

Industry context and competitive pressures

The layoffs occur as Amazon faces intensifying competition in multiple business segments. The company's advertising revenue reached $17.7 billion in the third quarter of 2025, representing 22% year-over-year growth. Amazon has consolidated its advertising platforms while expanding capabilities across retail media and streaming inventory.

Amazon sellers reported dramatic sales declines between May and August 2025, with many experiencing drops between 60-80% compared to previous years. The disconnect between Amazon's reported success and individual seller experiences highlighted the platform's increasing focus on large-scale operations and advertising revenue rather than third-party merchant support.

Amazon has been systematically expanding its retail infrastructure beyond its own marketplace. The company introduced Manufacturing Central in August 2025, connecting sellers with manufacturers in India across seven product categories. This initiative followed Amazon's requirement that sellers upload sourcing cost data for reimbursement calculations.

Immigration policy debates intensify

The allegations have intensified broader debates about technology industry immigration policies. Some forum participants advocated for laws requiring organizations to lay off non-residents before U.S. citizens during workforce reductions, arguing this would better align with the stated purpose of temporary work visa programs.

Others pushed back against characterizing the issue as immigration-related, arguing that layoff decisions should be based solely on performance and business requirements rather than visa status. "If the premise of a layoff is 'efficiency', maybe the H1B employees in your org are more efficient," one commenter wrote.

Legal experts note that employment discrimination based on national origin violates federal law, though companies retain broad discretion in structuring layoffs during legitimate business reorganizations. Proving discriminatory intent in layoff decisions typically requires statistical evidence showing patterns across large employee populations rather than anecdotal reports from individual teams.

The Department of Homeland Security and Department of Labor maintain reporting requirements and enforcement mechanisms for H-1B program compliance. However, these focus primarily on wage requirements, working conditions, and proper documentation rather than comparative treatment during layoffs.

Financial performance amid workforce reductions

Amazon shares declined 2.1% in regular trading on January 28 following the layoff announcement. The company is scheduled to report quarterly earnings results next week, providing investors with updated financial performance data and forward guidance.

Galetti left open the possibility of further reductions in her statement to employees, noting that some teams will continue to "make adjustments as appropriate." She attempted to address concerns about recurring layoff cycles: "Some of you might ask if this is the beginning of a new rhythm - where we announce broad reductions every few months. That's not our plan."

The latest cuts mark the second major round in three months after Amazon eliminated 14,000 jobs in October 2025. At that time, the company cited artificial intelligence advances and concerns over shifting corporate culture as contributing factors, while also acknowledging it had overhired during the COVID-19 pandemic when demand for online shopping skyrocketed.

Amazon has been investing heavily in robotics at its warehouses to speed up packaging and deliveries for its e-commerce segment, reduce reliance on human labor, and cut costs. These automation investments parallel the company's deployment of AI tools across corporate functions, potentially displacing both warehouse and knowledge worker positions over time.

Calls for boycotts emerge online

Social media discussions evolved into calls for consumer boycotts as allegations spread beyond technical forums. "This is wrong Amazon This is wrong might be time to boycott Amazon for American Workers being replaced with foreigners," one user wrote on platform discussions.

The American Bazaar reported on January 30 that the Reddit post had sparked fresh debate over layoffs in Big Tech and the treatment of U.S. workers amid continued reliance on H-1B visa holders. Multiple users shared personal experiences of being laid off while colleagues on work visas retained positions.

"Happened to my husband as well. Laid off in October - half his team. All Americans," one commenter stated. Another wrote: "I worked at a startup in Austin from 1998-2000. At some point one of the genius execs decided to fire the US SW engineers and outsourced to an Indian firm. I don't think we ever sold another system afterwards."

Industry consultant Jon Elder, founder of Black Label Advisor, shared the allegations on LinkedIn, attracting thousands of reactions from marketing and e-commerce professionals. The post accumulated over 200 comments within 48 hours, with perspectives ranging from support for visa program reform to defense of merit-based employment decisions regardless of citizenship status.

The Amazon layoffs fit within broader technology industry workforce adjustments. UPS, Pinterest, and ASML all announced staff reductions in recent days as companies reassess headcount following pandemic-era expansion.

However, the scale and approach of Amazon's reductions have drawn particular scrutiny given the company's position as the largest H-1B petitioner and its simultaneous investments in automation technologies. The company's actions will likely influence workforce strategies across the technology sector as AI capabilities advance and economic pressures intensify.

Research examining AI's impact on employment has suggested that making work dramatically cheaper through AI could potentially expand total addressable markets sufficiently to increase employment despite individual tasks requiring less human effort. This Jevons paradox application to knowledge work presents a counterintuitive possibility that conflicts with prevailing unemployment concerns.

The tension between automation-driven efficiency gains and workforce stability will likely persist as companies navigate technological transformation pressures while managing regulatory compliance and public perception concerns. Amazon's approach to balancing these competing priorities may establish precedents that shape industry practices for years to come.

Timeline

  • Late 2022 - Early 2023: Amazon eliminates 27,000 positions in previous largest workforce reduction
  • October 2025: Amazon announces 14,000 corporate job cuts, citing AI and cultural concerns
  • November 11, 2025: Amazon launches Ads Agent and consolidated Campaign Manager platform at unBoxed conference
  • January 9, 2025: Amazon introduces Retail Ad Service enabling retailers to implement sponsored product advertisements
  • January 27, 2026: Amazon mistakenly sends "Project Dawn" email to AWS staff; announces Fresh and Go store closures
  • January 28, 2026: Amazon confirms 16,000 additional corporate layoffs, bringing total to 30,000 since October
  • January 28, 2026: Reddit posts alleging discrimination against American workers in layoff selections begin circulating
  • January 30, 2026: Media outlets report on growing controversy and boycott calls

Summary

Who: Amazon confirmed layoffs affecting 16,000 corporate employees across multiple divisions including Amazon Web Services, Alexa, Prime Video, devices, advertising, and logistics operations. CEO Andy Jassy directed the workforce reduction, with Beth Galetti communicating the decisions to affected employees. Self-identified Amazon software engineers shared allegations on Reddit and LinkedIn suggesting American workers faced disproportionate impacts.

What: Amazon eliminated 16,000 corporate positions, completing a reduction of 30,000 jobs since October 2025, while simultaneously closing Fresh grocery stores, Go markets, and the Amazon One biometric payment system. Social media posts alleged that American citizens were laid off at higher rates than H-1B visa holders on some teams, sparking controversy and boycott calls. U.S. Citizenship and Immigration Services data shows Amazon approved 13,265 H-1B beneficiaries in fiscal year 2025, ranking first among all U.S. employers.

When: The company announced the 16,000 layoffs on January 28, 2026, with implementation beginning January 27. The reductions followed 14,000 cuts announced in October 2025, representing the largest workforce restructuring in Amazon's three-decade history.

Where: Layoffs affected Amazon's corporate operations globally, with particular impact on Seattle-area teams in transportation, devices, and core services divisions. Forum discussions indicated employees in multiple U.S. locations and international offices received termination notices. The controversy spread across Reddit, LinkedIn, and other social media platforms where technology professionals congregate.

Why: Amazon cited the need to reduce bureaucracy, increase ownership, and remove organizational layers as justifications for the workforce reductions. The company acknowledged overhiring during the COVID-19 pandemic while pointing to AI automation capabilities that reduce human labor requirements for certain functions. Executives framed the cuts as necessary to strengthen the company's competitive position and improve operational efficiency. However, employees questioned whether visa status influenced selection criteria, raising concerns about workforce control dynamics and immigration policy compliance.

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