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News In Brief Business and Economy

Amazon to Lay Off 500+ Employees in India

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Amazon to Lay Off 500+ Employees in India
29 Jan 2026
5 min read

News Synopsis

Amazon is set to cut more than 500 jobs in India as part of its latest global workforce reduction, which will eliminate around 16,000 roles worldwide. The move follows an earlier round of layoffs announced in October and marks the largest downsizing exercise in the company’s history, reflecting mounting pressure on global tech firms to cut costs and streamline operations.

Amazon Layoffs to Impact Over 500 Employees in India

India to Face Significant Share of Global Job Cuts

Amazon is preparing to lay off more than 500 employees in India as part of its latest round of global workforce reductions, according to people familiar with the matter. Globally, the company is cutting around 16,000 roles, with India emerging as one of the affected markets.

The India impact is expected to be split almost evenly between Amazon’s e-commerce operations and Amazon Web Services (AWS), though AWS is likely to account for a slightly higher share of the exits.

Amazon’s Largest Downsizing Exercise So Far

Nearly 30,000 Jobs Cut Across Two Rounds

October and Current Layoffs Combined

The latest job cuts follow a similar exercise in October, when Amazon announced the elimination of around 14,000 roles globally.

Taken together:

  • Total job losses: Nearly 30,000

  • Share of global corporate workforce: Close to 10%

  • This marks the largest downsizing in Amazon’s history

The total layoffs over the last three months also exceed the roughly 27,000 jobs Amazon cut across 2022 and 2023.

Local Market Pressures in India

E-commerce Performance Weighs on India Operations

Amazon currently employs about 130,000 people in India across its e-commerce, cloud, and corporate functions.

Weak Sales Performance Behind Cuts

Sources said the layoffs in the Indian e-commerce business come amid weaker performance in recent months, particularly during the last three major sales events, where Amazon lost ground to rival Flipkart in terms of traction and volumes.

AWS India Impact Explained

Global Role Cuts Ripple Into India

Support Roles Hit at AWS

At AWS, the impact is largely linked to the nature of work handled out of India, where many teams support global leadership and international operations.

“When a global role is eliminated, the corresponding support roles in India are also affected,” a person familiar with the matter said.

Internal Redeployment Possible

In some cases, affected employees may be redeployed internally, depending on business requirements and skill alignment.

Organisational Simplification Drive

Amazon Cites Structural Streamlining

In a blog post announcing the global layoffs, Amazon said the move was part of a broader effort to simplify its organisational structure.

“We have been working to strengthen our organisation by reducing layers, increasing ownership, and removing bureaucracy,” the company said.

“While many teams finalised their organisational changes in October, other teams did not complete that work until now.”

Employee Transition and Support Measures

Severance and Internal Job Search Options

Amazon said employees in the US would be given 90 days to look for other roles internally. Those who are unable to find alternative positions will be offered:

  • Severance pay

  • Healthcare benefits

  • Outplacement support

Similar transition support is expected to be extended in other geographies, including India.

AI and Automation Driving Long-Term Changes

CEO Signals Fewer Corporate Roles Over Time

Earlier in 2025, Amazon CEO Andy Jassy indicated that the growing use of generative artificial intelligence and automation would gradually reduce the need for certain corporate roles over the coming years, even as new types of jobs are created.

Amazon also said it would continue selective hiring in areas critical to its long-term strategy, stressing that broad-based layoffs were not its preferred approach.

Amazon’s Global Workforce Snapshot

Scale of the Company Remains Massive

  • Total global employees: ~1.57 million

  • Majority work in warehouses and fulfillment centres

  • Corporate workforce: ~350,000 employees

The latest layoffs underscore the growing pressure on global technology companies to rein in costs amid slowing growth, rising competition, and evolving business priorities.

TWN In-Focus