In a significant move impacting the tech sector, Amazon has announced plans to eliminate approximately 16,000 positions as part of its latest workforce reduction.

This decision was revealed by Beth Galetti, a senior vice president at Amazon, through a blog post published on Wednesday.

This wave of layoffs comes on the heels of a previous reduction in October, which saw 14,000 Amazon employees losing their jobs.

Galetti detailed that employees based in the United States will receive a 90-day period to seek new opportunities within the company. If they do not find a suitable position or choose not to pursue one, they will be provided with severance packages, access to outplacement services, and health insurance coverage.

“Despite these changes, we remain committed to hiring and investing in key areas and functions that are essential for our future growth,” stated Galetti.

The layoffs are Amazon’s biggest since 2023, when the company cut 27,000 jobs.

Amazon’s workforce doubled during the COVID-19 pandemic as millions stayed home and boosted online spending. But in the following years, big tech and retail companies cut thousands of jobs to bring spending back in line.

Hiring has stagnated in the U.S., and in December, the country added a meager 50,000 jobs, nearly unchanged from a downwardly revised figure of 56,000 in November.

Labor data points to a reluctance by businesses to add workers even as economic growth has picked up. Many companies hired aggressively after the pandemic and no longer need to fill more jobs. Others have held back due to widespread uncertainty caused by President Donald Trump’s shifting tariff policies, elevated inflation, and the spread of artificial intelligence, which could alter or even replace some jobs.