Amazon delivers more bad news for workers before earnings

Amazon delivers more bad news for workers before earnings

Aparajita Chatterjee

Mon, January 26, 2026 at 12:07 PM EST

3 min read

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Amazon, the leading e-commerce retailer, is planning another round of layoffs and could announce them as early as this week.

Reuters previously reported that Amazon planned to eliminate around 30,000 white-collar jobs, about 10% of its corporate workforce. In October 2025, the tech giant laid off approximately 14,000 employees, citing workforce streamlining.

Now, as early as Tuesday next week, Amazon will reportedly announce the second round of its broader layoff plan; the number is expected to be the same as in October: 14,000. This can impact employees across its Prime Video, human resources, and Amazon Web Services units.

If confirmed, the reductions could surpass Amazon’s 2022 layoff record, when the company cut roughly 27,000 corporate roles.

In October, Amazon faced backlash over job cuts, attributing them to the company’s growing reliance on artificial intelligence. However, CEO Andy Jassy clarified in the company’s third-quarter earnings call that the layoffs were financially driven, not AI-driven.

<em>Amazon's stock is up 3.6% year to date.</em>Shutterstock — *Amazon's stock is up 3.6% year to date.*Shutterstock · Shutterstock

Amazon has been steadily building its AI operations and expanding its scope through new deals. In October, Amazon announced that its Amazon Robotics, founded in 2012, had deployed more than 1 million robots across its network.

Further into the idea of using AI to build technologies that enhance employee productivity, to make “workday safer, easier, and more productive while delivering packages to customers faster than ever.”

Amazon also launched two new internal systems – Blue Jay and Project Eluna to “reduce physically demanding tasks, simplify decisions, and open new career opportunities for the employees who keep Amazon moving.”

Details of the upcoming round of layoffs remain limited, and Amazon has not issued an official announcement.

Analysts weigh in on Amazon ahead of earnings

The news of its layoff comes a week before the company is scheduled to announce its Q4 earnings on February 5.

More AI Stocks:

The $2.56 trillion tech giant is up 3.6% year to date, but analysts are optimistic about its performance in 2026. Bank of America has named Amazon its top mega-cap pick, citing expected profit growth and the potential for expansion through new AI deals, AWS growth, and adoption of its in-house Trainium AI chips.

Story Continues

According to BofA, AWS leadership changes, among others, could “drive change in AWS’s AI positioning, & strong Rufus usage growth setting up an Agentic retail future.”

Also noting the growing adoption of its Trainium, and if it “improves vs competitors, AWS’s AI positioning as a lower-cost provider could become a meaningful advantage as enterprises focus on AI inference cost efficiency.”

Earlier in 2025, Amazon mandated that workers return to the office five days a week, sparking widespread online backlash for being inconsiderate. With another round of layoffs around the corner, forums like Reddit and Blind are again full of people worrying about the potential loss of 401(k)s and the decreasing job security amid increasing adoption of AI.

This story was originally published by TheStreet on Jan 26, 2026, where it first appeared in the Employment section. Add TheStreet as a Preferred Source by clicking here.

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