Amazon to Cut 14,000 Jobs Amid Slower Post-Pandemic Growth

Amazon has confirmed the elimination of approximately 14,000 corporate jobs, a process that will begin imminently and is expected to conclude in early 2026. This adjustment represents the second-largest workforce reduction in the company's history, following previously announced cuts.

The decision is based on the organization's need to adapt to an uncertain macroeconomic environment and a post-pandemic growth slowdown. Sources cite an internal memo from Beth Galetti, Senior Vice President of People Experience and Technology, Amazon, who said the measure will apply to employees “no longer required to perform work on Amazon's behalf".

The reduction of 14,000 roles is not an isolated event. It adds to the 27,000 layoffs that Amazon implemented between late 2022 and early 2023, according to Reuters. With this new phase, the total staff reductions in the last three years exceed 40,000 employees since then.

This adjustment cycle contrasts sharply with the accelerated expansion the company experienced during the pandemic years (2020–2022), a period in which its global workforce doubled to meet the exponential increase in demand for e-commerce and cloud services.

The current contraction phase responds to multiple factors. First, the normalization of consumption patterns has reduced e-commerce growth compared to pandemic peaks. Second, the environment of high interest rates and persistent inflation has forced technology corporations (Big Tech) to re-evaluate their cost structures and prioritize operational efficiency.

Amazon's move is symptomatic of a broader sector trend, where companies like Meta, Alphabet (Google) and Microsoft have also executed significant workforce reductions. The focus has shifted from "hypergrowth" (growth at all costs) to seeking sustainable operating margins and reallocating capital toward high-priority strategic areas, such as GenAI.

Areas of Impact and Investment Refocus

While Amazon has not detailed the full breakdown of the affected divisions, Reuters indicates that the devices and services unit will be one of the main areas impacted. This division is responsible for developing the Alexa voice assistant and Echo devices.

For years, the Alexa strategy focused on market penetration (hardware sold at low cost or at a loss) with the expectation of monetizing through services and voice purchases. However, the division's direct revenue generation has faced difficulties, making it a target for cost optimization. The cuts suggest a fundamental reassessment of Alexa's commercial viability in its current form, especially given the emergence of more advanced GenAI models that are redefining expectations for virtual assistants.

Other areas anticipated to undergo adjustments include retail operations and corporate departments such as human resources, in line with the search for efficiency in support functions. Although Amazon Web Services (AWS) remains the company's most profitable division and a pillar of its cash flow, Wired indicates that even this unit, the engine of cloud computing, will not be immune to adjustments, although likely at a smaller scale, seeking to optimize its own cost structure.

External Scrutiny and Political Reaction

The corporate decision has generated notable external scrutiny. US Senator Bernie Sanders, Chairman of the Senate Committee on Health, Education, Labor, and Pensions, publicly criticized the measure, according to Expansion.

Sanders questioned the justification for the layoffs by contrasting them with the company's multi-billion-dollar investments in other areas. The Senator also pointed to high executive compensation as a point of friction, contrasting the workforce's job security with the corporation's spending priorities.

This criticism highlights the growing political and social pressure on Big Tech, where capital allocation and personnel management decisions are analyzed not only by financial markets but also by regulators and the public, affecting corporate reputation and regulatory risk (ESG).