Amazon Announces Layoffs in Retail Division, Impacting Hundreds of Employees

In a move that caught many by surprise, Amazon has laid off a significant number of employees in its Stores business segment this week, specifically impacting customer service, selling partner support, and retail engineering teams. The job cuts, which occurred during Prime Big Deal Days, the company’s fall shopping event, are part of a series of smaller layoffs that Amazon has implemented in recent months.

While exact numbers were not disclosed, internal communications revealed that fewer than 1,000 employees were affected by the restructuring. The layoffs primarily targeted employees in the U.S., India, and the UK, signaling a global impact on Amazon’s workforce.

Amazon’s spokesperson stated, “We’re continually evaluating our team structures to ensure agility and innovation for our customers. The adjustments within our Stores business aim to enhance our ability to deliver on our strategic priorities.” The company emphasized its commitment to supporting affected employees through the transition process.

This recent round of job cuts follows Amazon’s previous workforce reduction in October 2025 and January 2026, where approximately 30,000 corporate positions were eliminated. Despite these cuts, Amazon’s online store sales saw a 15% increase to $70.4 billion in the second quarter, with revenue from third-party seller services growing by 16% to $46.8 billion.

Amazon’s founder and executive chairman, Jeff Bezos, addressed the job cuts in a recent interview, highlighting the company’s rapid growth during the pandemic and the need to realign its workforce accordingly. Bezos expressed optimism about the role of artificial intelligence in driving productivity but acknowledged the challenges of workforce transitions in a rapidly evolving economy.