SEATTLE — Amazon has announced mass layoffs that will affect nearly one in 10 members of its corporate workforce, cutting about 16,000 jobs in a move that is already sending ripples through the regional economy.
RELATED | Amazon to cut about 16,000 corporate jobs in latest round of layoffs
The reductions come just three months after the e-commerce giant eliminated about 14,000 positions, marking one of the most significant periods of workforce contraction in the company’s history.
Amazon has cited a growing reliance on artificial intelligence and a need to streamline operations as key drivers behind the cuts.
While the full impact is still being assessed, small businesses that depend on Amazon’s corporate workforce are bracing for potential fallout.
At Kathmandu MoMoCha, a restaurant near Amazon offices in downtown Seattle, owner Sam Dangol said Amazon employees make up a large share of his lunchtime customers.
“Very unique cuisine for Seattle,” Dangol said. “We brought it all the way from the Himalaya of Nepal.”
Dangol said his business relies heavily on the midday rush from Amazon workers.
“So definitely lunchtime is Amazon staff,” he said. “So we have to be ready for two hours of rush.”
Amazon confirmed that 16,000 corporate employees received layoff notices. The company declined to say how many of those positions are based in the greater Seattle area.
Some employees said the news, while difficult, was not entirely unexpected.
“It is a lot. It is a lot,” said Morris Brown, an Amazon employee whose team was not affected. “But I’ve been in this industry for over a couple of decades now, and so I’ve seen quite a bit of it. It’s part of the cycle.”
Jon Scholes, president and CEO of the Downtown Seattle Association (DSA), warned that the job losses could have broad consequences.
“A workforce change of this scale has ripple effects on the community — on individual employees and families and businesses that rely on the foot traffic,” DSA said in a statement. “As companies grapple with emerging trends, we hope this pain is short-term.”
U.S. Rep. Pramila Jayapal, a Democrat whose district includes parts of Seattle, said rising unemployment and weak job growth are weighing on the economy.
“We need employers who are responsibly thinking about how they support workers in this environment,” Jayapal said.
Dangol said he is preparing to adapt if fewer Amazon employees return to the office.
“It all depends on Amazon staff here,” he said. “It does definitely impact us, yes.”
Amazon said U.S.-based employees affected by the layoffs will be given 90 days to seek other roles within the company.
Those who do not find a new position or choose not to pursue one will be offered severance pay and limited health benefits.
State employment officials are expected to release more details on the regional impact in the coming weeks.
