Amazon has confirmed that it is cutting 16,000 corporate jobs globally. The company accidentally sent an email about the job cuts to its staff when informing them about the layoffs. 

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The email reached thousands of workers before they were supposed to know. These cuts follow 14,000 other jobs lost in October. Currently, Amazon has dropped 30,000 roles to focus more on Artificial Intelligence (AI).

Inside the ‘Project Dawn’ Communication Failure

The issue occurred on Tuesday night as an email was sent to thousands of workers at Amazon Web Services (AWS). This email said that workers in the US, Canada, and Costa Rica had already been fired. However, many people who got the email had not been informed. A few minutes later, the company sent a second email to ignore the first one. Meetings were deleted from calendars, and workers felt very confused and upset.

On Wednesday, Amazon’s HR Chief, Beth Galetti, sent a formal note confirming that 16,000 people were losing their jobs. Amazon said it needs to "flatten management" and "remove bureaucracy." This means they want fewer bosses and faster decisions. However, the email mistake hurt the company’s reputation. Many workers now feel they cannot trust the leadership. Internal chat groups are filled with angry messages from staff who feel disrespected by the error.

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Financial Fallout: What are the Specific Costs of Amazon's 2026 Restructuring?

Amazon is expected to pay about $1.8 billion in severance to the fired workers. This covers their final pay and health insurance. By cutting 30,000 high-paying jobs, Amazon will save about $4 billion every year. CEO Andy Jassy plans to use this money to build new AI technology and hardware.

Workers in the US received a special 90-day grace period, where they can stay on the payroll for three months while looking for a new job inside Amazon. However, with only a few job openings, this can be a difficult task. If they cannot find a new role, they get a payout and help finding a job elsewhere. This change also hurts cities like Seattle and Arlington. These cities rely on Amazon workers to spend money at local shops and restaurants.

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Overall, Amazon is prioritizing the use of AI over mass hiring. The email mistake shows that this change is messy and painful for the staff. Investors are relieved by the company’s cost-cutting that pushed the stock price up.