Amazon is undertaking another sweeping restructuring as it cuts 16,000 jobs globally, retreats further from its Amazon Fresh store network, and pushes forward with the launch of a new rapid‑delivery service, Amazon Now.
This reduction marks Amazon’s second major round of layoffs in three months, following a previous cut of 14,000 roles last autumn. According to an internal email seen by the BBC, the restructuring aims to “reduce layers, increase ownership, and remove bureaucracy” as the company increases investment in artificial intelligence and automation.
Amazon will provide most affected US-based employees 90 days to seek new internal roles, with severance packages and transition support offered to those unable or unwilling to make a move within Amazon. CEO Andy Jassy has led the organisation through several rounds of cuts since taking over from Jeff Bezos, while also reducing costs and implementing a strict work culture that includes a mandatory five days in the office.
Post-pandemic restructuring
Peter Fedoročko, CTO of GoodData, said Amazon’s latest layoffs highlight how large enterprises are reconsidering the realities of automation and pandemic‑era scaling. “Amazon’s decision to cut another 14,000 corporate roles is a signal that even the big names are rethinking the realities of automation and post-pandemic scaling,” he said. “Many companies overexpanded during a period of cheap capital and rapid digital acceleration. Now, they’re confronting what happens when AI, automation, and market efficiency collide with overhiring.”
He added: “The takeaway isn’t necessarily cost-cutting – it’s about system design. AI isn’t eliminating the human factor; it’s redefining it. The future belongs to organisations that treat AI not as a headcount reduction tool, but as a tool to benefit the workforce.”
Rachel Fagan, GMB organiser, criticised the decision, particularly its impact on UK workers. “Amazon is showing itself for what it is; a company that cannot be trusted to do the right thing by working people in the UK. Bosses are overseeing thousands of job losses which will cause huge damage in towns and cities across the country,” she said.
Retreating from Amazon Fresh
Alongside the job cuts, Amazon is closing all remaining Amazon Fresh and Amazon Go stores in the US, having already shuttered 19 UK Fresh locations last year. The retailer cited failure to achieve “a truly distinctive customer experience with the right economic model needed for large-scale expansion”. It has struggled to compete with Walmart, which dominates traditional grocery in the US, posting 34% earnings growth in Q3 2025. While some Amazon Fresh stores will become Whole Foods Markets, it has taken the strategic decision to retreat from low-margin physical retail, freeing capital and talent for AWS, marketplace operations and automation-driven efficiencies.
Amazon Now: a premium rapid‑delivery expansion
While scaling back one model, Amazon is advancing another by introducing ultra-fast delivery through Amazon Now. This premium service offers an upgrade over same-day fulfilment, with Prime members paying an additional fee for expedited delivery windows.
Jack Tomson, chief growth officer of Trojan eCommerce, said the new service represents an attempt to enter a space already shaped by Uber and other rapid‑delivery platforms. “Amazon Now looks less like a breakthrough and more like Amazon stepping into Uber’s territory, but with a premium price attached,” he said. “Uber has spent years training consumers to expect rapid delivery bundled with discounts, while Amazon is asking Prime members to pay extra for speed without a clearly different value proposition.”
He added that while the service demonstrates continued experimentation after Amazon’s withdrawal from cashierless stores, its long-term viability will depend on consumer demand for ultra-fast delivery. “It’s an interesting test of how much consumers are genuinely willing to pay for extreme convenience,” he said. “The more significant question is where this model goes next. If Amazon were to extend ultra-fast delivery into regulated categories such as over-the-counter medicines, as it already has in parts of the US, the implications would be far broader, raising questions around access, safety and how healthcare delivery is organised in the UK.”
What this means for Amazon
None of these changes indicates that Amazon is in ‘panic mode’. In Q3, the company reported a 12% year-on-year revenue increase to $180.2 billion, surpassing analyst expectations of $177.8 billion. The world’s largest online retailer is acting strategically, focusing on its core strengths and areas with the highest growth potential, such as AWS and marketplace infrastructure. Amazon is not slowing down; it is shifting its direction.
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