Massive layoffs, with strategic shifts: Amazon cuts 30,000 jobs, yet AWS CEO insists AI isn’t replacing workers — so what’s the real story?

Amazon cut around 30,000 jobs over recent months, yet plans to hire more. The numbers don’t seem to line up at first glance. After tens of thousands of job cuts, a new hiring push has emerged from the same company. It’s a shift that has left many wondering what’s really happening behind the scenes. Fresh comments from leadership are adding another layer to the story, as per a report.

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Why did Amazon cut jobs while planning new hires?

In recent months, Amazon has carried out significant layoffs, cutting about 16,000 roles in January and another 14,000 toward the end of 2025. Altogether, that brings the total to roughly 30,000 jobs lost, with reports suggesting more cuts could still be on the way as the company leans further into automation and AI.


At the same time, a very different message is coming from AWS CEO Matt Garman. Speaking at the AWS What’s Next event, he said Amazon is actively hiring and expects to bring in around 11,000 software development interns and full-time employees in 2026, as per a report.


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Is AI actually replacing jobs inside Amazon?

Matt Garman pushed back strongly against the idea that artificial intelligence is eliminating roles. Instead, he described the narrative as exaggerated and misplaced.

"I can tell you we are hiring just as many software developers as we ever had inside of Amazon,” Garman said. “And in fact, I see the demand for that really accelerating.” He reinforced the point by adding that the company’s hiring plans show that "nature of every job is gonna change and it’s not that the jobs are going away. It’s just the high value things that we are gonna do more of.”


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How is AI changing the nature of work?

According to Garman, the real shift isn’t in job numbers but in what those jobs look like. AI agents — systems capable of operating autonomously — are expanding rapidly across industries and evolving faster than expected.
These tools are increasingly taking over repetitive tasks such as debugging, writing routine code, and managing operational workflows. But rather than reducing the need for engineers, Garman said they are helping developers focus on more complex responsibilities.

“The jobs will be a little bit different,” he explained, pointing out that tasks like writing small code snippets may become less central, while system design and understanding broader architecture are becoming more valuable.

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What changes are already happening inside AWS?

The impact of AI is already visible within Amazon’s own teams. Garman noted that tasks that once took weeks can now be completed in minutes, and large-scale systems are being rebuilt far more quickly with AI-assisted tools.

He shared an example from his own office, where a project initially expected to take two years was completed in just two quarters. The shift, he suggested, highlights how AI is accelerating development timelines rather than shrinking teams.


“While we’re making these changes, we’ll also continue hiring and investing in strategic areas and functions that are critical to our future. We’re still in the early stages of building every one of our businesses and there’s significant opportunity ahead,” said Beth Galetti, Senior Vice President of People Experience and Technology at Amazon. She made this statement in January 2026 after approximately 16,000 roles across Amazon were reduced.

Even with layoffs affecting multiple areas, including managerial roles within AWS, the broader message from leadership remains consistent: hiring continues, demand for skilled developers is growing, and AI is transforming how work gets done—not eliminating it.

FAQs

Is Amazon still hiring after layoffs?
Yes, the company plans to bring in around 11,000 developers and interns.

Is AI replacing software developer jobs at Amazon?
No, leadership says AI is changing roles, not eliminating them.