Amazon Lays Off 500+ In India As Global Restructuring Deepens

Amazon Cuts Over 500 Jobs In India As AI Push And Global Restructuring Intensify
Amazon Lays Off 500+ In India As Global Restructuring Deepens
Written By:
Somatirtha
Reviewed By:
Sanchari Bhaduri
Published on

Amazon has laid off over 500 employees across its India offices as part of a global restructuring that will affect more than 16,000 roles worldwide. According to media reports, the number of employees affected in India is estimated to be between 500 and 700.

Why is Amazon Cutting Jobs in India Now?

According to multiple sources, technology and HR teams have been the most impacted, with software development engineer (SDE) roles seeing the highest number of layoffs. Amazon declined to answer detailed questions and instead pointed to an internal note from senior vice president Beth Galetti.

In the note, Galetti said the company is reducing management layers, increasing ownership, and removing bureaucracy to strengthen execution.

She added that affected employees will receive transition support, including severance pay, outplacement services, and health insurance benefits, subject to local regulations. Galetti also said Amazon would continue hiring in strategic areas and that the changes do not signal frequent, large-scale job cuts.

How Does This Fit into Amazon’s Broader Restructuring?

The latest round follows earlier job cuts in India. Last November, Amazon reportedly laid off up to 1,500 employees across verticals such as Prime Video, HR, devices, retail stores, and AWS.

Most of these cases have involved junior and mid-management staff from Chennai, Hyderabad, and Bengaluru, with a few operationsentirely closed.

Globally, Amazon has been trimming its workforce over the past year as it seeks to streamline operations and redirect resources towards long-term priorities.

Also Read: Amazon Eyes $50 Billion OpenAI Investment Amid Ongoing Workforce Reductions

What Explains Amazon’s Aggressive Push into AI?

Amazon is increasing its investment in artificial intelligence while it decreases its workforce. The company is reportedly in talks to invest up to $50 billion in OpenAI, which is raising up to $100 billion at a valuation of around $830 billion. The discussions between Amazon CEO Andy Jassy and OpenAI chief Sam Altman are reportedly led by Jassy.

Amazon has committed over $100 billion to capital expenditure, much of it for AI-driven data centres, while also backing OpenAI rival Anthropic.

Are Layoffs Becoming the Price of the AI Boom?

These cuts come amid rising adoption of AI-led automation across industries. The Indian startup sector fired more than 9500 workers in 2025, showing how companies spent billions on AI development while working to create and implement new AI systems.

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