Amazon has announced plans to retrench around 16,000 employees globally as part of a broader effort to streamline its organisation and improve long-term efficiency. The move affects roles across multiple teams and regions, although the technology and e-commerce giant has not disclosed how many employees in Singapore or Asia will be impacted.
In an internal update shared publicly, Amazon said the latest round of job cuts is linked to ongoing efforts to simplify decision-making and remove internal complexity. The company stressed that the changes are aimed at strengthening the business rather than scaling back its ambitions, adding that hiring will continue for roles considered strategic and critical.
The announcement comes amid continued volatility in the global technology sector, where major firms have been reassessing costs, headcount and operational structures in response to changing economic conditions, cloud spending trends and advertising demand.
WHY AMAZON IS MAKING ORGANISATIONAL CHANGES
Amazon explained that the retrenchment follows a restructuring exercise that began several months ago. The company has been reviewing team structures with the aim of reducing management layers, increasing individual ownership and speeding up execution.
While many teams completed this process earlier, others required further changes, resulting in the latest job reductions. Amazon acknowledged that the decision would be difficult for affected staff, but said transparency was important in explaining the rationale behind the move.
The company also sought to address concerns that repeated job cuts could become routine. It clarified that broad reductions announced every few months are not part of its long-term plan, although teams will continue to review their structure as business needs evolve.
SUPPORT FOR AFFECTED EMPLOYEES
Amazon said it is putting measures in place to support employees whose roles are affected. For staff based in the United States, affected employees will be given a 90-day window to apply for alternative internal positions within the company.
For employees outside the US, including those in Asia-Pacific markets, timelines and support measures will vary depending on local labour laws and country-specific requirements. Those who do not secure a new role internally, or who choose not to pursue one, will receive transition assistance.
This support package includes severance pay, outplacement services to help with job searches, and continued access to health insurance benefits where applicable. Such measures are increasingly common among multinational employers navigating global workforce restructuring.
HIRING TO CONTINUE IN KEY AREAS
Despite the retrenchment, Amazon reiterated that it will continue to invest in growth areas critical to its future. These include cloud computing, artificial intelligence, logistics optimisation and other technology-driven initiatives that underpin its core businesses.
The company said it remains in the early stages of building many of its offerings and sees significant opportunities ahead, particularly in enterprise services and digital infrastructure. As such, recruitment will continue selectively, even as other parts of the organisation are downsized.
For professionals in Singapore’s tech and e-commerce sector, the announcement underscores the importance of adaptability in a rapidly shifting job market. While global retrenchments may create short-term uncertainty, demand for specialised digital skills, cloud expertise and high-value technology roles remains strong across the region.