First the company announced Amazon Fresh and Amazon Go was shutting down. A day later, an additional 16,000 corporate jobs are getting axed too.
SEATTLE — Even as Amazon reports record earnings, the company is eliminating thousands of positions.
Wednesday, the company announced it was laying off 16,000 corporate employees to streamline operations and free up money for investments into artificial intelligence. The company did not specify which business units would be affected or where the cuts would be made.
RELATED: Amazon Fresh, Amazon Go stores to close | Full list of Washington closures
In a statement posted online and shared with employees, Amazon’s human resources chief Beth Galetti said, “We’re reducing layers, increasing ownership, and removing bureaucracy.”
The announcement was widely anticipated. In October, Amazon laid off 14,000 corporate employees and indicated more cuts were coming 2026.
Galetti tried to reassure employees that the company was not planning for frequent cuts, but did not rule out more impending layoffs.
“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. But just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate,” she said.
The cuts come just one day after the company announced it was shuttering Amazon Fresh and Go stores nationwide. Most stores are closing February 1.
Amazon reported to the State’s Employment Security Department on Wednesday that this would impact 401 positions across Western Washington.
In the last year, Amazon has laid off at least 2,913 people in Washington. That figure does not include whatever portion of the 16,000 job losses will be in the state.
The company’s third quarter financial results exceeded expectations. The company’s sales totaled $180 billion and profits hit $21 billion.
In Washington, where Amazon is widely considered the state’s largest private employer, the layoffs are raising concerns about impacts to local economies.
Joy Hollingsworth, president of the Seattle City Council, said she anticipates ripple effects beyond the immediate job losses.
“When it’s a hometown company laying off people, you’re trying to figure out how it’s going to impact the city of Seattle,” she said. “We’re concerned about the pace of jobs being lost, the impact to the city, and the domino effect that has on local businesses.”
Hollingsworth anticipates it’ll take months for the impacts to be clear, and warns that Seattle’s downtown could be hit especially hard.
“Think about the ripple affect of that person not coming to downtown anymore. They’re spending $10, $15 on lunch and parking. And all these play into the economy,” she said.
Some impacts will be felt immediately.
When Amazon announced the closure of its Fresh and Go stores Tuesday, residents expressed shock, heartbreak and even anger to KING 5.
In Seattle’s Central District at Jackson and 23rd Avenue, the impending closure of the Amazon Fresh means there won’t be a grocery store in the neighborhood. The nearest major grocery store is about a 24-minute walk away.
“There’s really nothing around here that offers what they do,” said Krissi Jacobson, who works two blocks from the Amazon Fresh. The only other options for food are a Walgreens and small restaurants.
The store is located in Seattle City Council President Joy Hollingsworth’s district. She said she is working to attract another grocery store to the location, ideally a Trader Joe’s.
“Grocery stores are essential. They’re a lifeline,” Hollingsworth said. “They are also pharmacies for people to be able to get their medication.”
On the closure itself, Hollingsworth was direct: “When you lose a grocery store, it’s not just a food access point where people are shopping. It’s also a place where people go to shop and they see their friends. It’s also a place of conversation.”
Despite the layoffs and store closures, Hollingsworth remained measured in her response to Amazon’s broader impact on the city.
“I can’t comment on a business deciding to put jobs or figuring out a new business plan – that is within their right,” she said. “But I think it’s more about the impact and how can we minimize that as a government? I’m willing and ready to sit down with any company that wants to figure out how we push Seattle forward.”
Deputy Mayor Brian Surratt gave a similar statement of support: “Seattle remains proud of its long-standing partnership with Amazon and the role the company has played in building one of the most innovative local economies in the world. We are committed to supporting Amazon’s long-term presence in Seattle.”
Mayor Katie Wilson did not respond to KING 5’s request for comment. A spokesperson said she was unavailable.
