Amazon’s ongoing layoffs in Washington state highlight a stark shift in priorities, with public records showing nearly 2,400 job cuts over the past year. These reductions, affecting engineers, recruiters, product managers, and software developers, continue into early 2026. Lights stayed on late in Seattle offices as the company reallocates resources amid a massive push into new technologies.
A Massive $100 Billion Shift
Amazon plans to spend over $100 billion in 2025, mostly on artificial intelligence infrastructure. This includes building data centers and developing custom chips to boost machine learning and computing power. The investment marks a sharp increase from previous years.
At the same time, the company has sharply reduced its corporate staff. Washington state, home to Amazon’s headquarters, feels the biggest impact. This contrast is striking: huge spending on technology alongside thousands of job losses.
From Rapid Growth to Hiring Freeze
Amazon’s corporate workforce grew to around 350,000 people worldwide during the pandemic boom. In the Seattle area alone, about 50,000 worked in Seattle proper, with another 14,000 in nearby Bellevue. That expansion reversed quickly.
Between 2022 and 2023, the company cut 27,000 jobs. By 2025, a hiring freeze set in, as Big Tech firms focused on efficiency. Amazon aimed to streamline operations while adapting to changing market demands.
Return-to-Office Rules Add Pressure
CEO Andy Jassy required employees to return to the office five days a week. He expected some workers to leave voluntarily, helping reduce staff numbers naturally. When that did not happen enough, the company made targeted cuts.
These hit management layers and roles seen as redundant. AI tools also automated many routine tasks, increasing worries in Washington’s tech centers. Office vacancy rates softened as a result, leaving many professionals uncertain.
Washington’s Layoff Numbers Mount
Recent public disclosures reveal more cuts. In December 2025, Amazon announced 84 layoffs planned from February 2 to 23, 2026. These affect engineering, recruiting, software development, and product roles in Seattle and Bellevue.
An Amazon spokesperson described them as “individual business decisions,” separate from earlier global rounds. In October 2025, the company eliminated about 2,303 positions across dozens of Seattle-area offices, plus eight in Bellevue and six for remote workers. Washington’s mini-WARN law, which started in July 2025, requires notice for layoffs affecting more than 50 people, bringing these details to light.
Strong Support for Laid-Off Workers
Workers facing cuts receive generous support. This includes 90 days of full pay and benefits, plus extended health coverage and help finding new jobs. These benefits go beyond the state’s required 60-day notice period. Notifications began in early November.
Microsoft followed a similar path, cutting over 15,000 jobs worldwide from May to July 2025. More than 3,100 of those were in Washington, even as the company saw rising AI revenues. Seattle’s major tech companies have reshaped the local job market together.
AI Investment Drives Broader Changes
Amazon views AI as the largest transformation since the internet’s rise. The company is speeding up construction of massive data centers and custom chips for generative AI. October’s layoffs targeted software engineers, program managers, designers, recruiters, and HR staff.
These cuts fit a plan to eliminate 14,000 corporate roles globally for better focus. Jassy pushes to flatten management, reduce approvals, and hire selectively in AI, cloud computing, and infrastructure. Some employees avoid layoffs through internal transfers.
Morale Challenges and Uncertain Future
Employee morale has dropped as remaining teams take on more work amid job insecurity. Leaders recognize the pressure from fast-changing technology that requires leaner teams. Analysts describe this as part of ongoing restructuring, with effects on offices, local businesses, and tax revenues.
HR head Beth Galetti has signaled that cuts could extend into 2026. Washington’s transparency law helps workers and communities prepare in a volatile tech economy. AI’s global expansion attracts talent to new areas but reduces traditional jobs. Data centers also put pressure on electricity and water supplies. The big question remains whether this efficiency push will fuel growth without too high a human cost, as regional workers wait amid rising innovation.
Sources:
“Amazon lays off more Seattle, Bellevue employees amid corporate restructuring.” Yahoo Finance, 16 Dec 2025.
“Amazon expects to spend $100 billion on capital expenditures in 2025.” CNBC, 6 Feb 2025.
“Microsoft layoffs: 830 jobs cut in Washington state as part of latest global reductions.” GeekWire, 1 Jul 2025.
“Washington Governor signs state’s ‘Mini-WARN Act’.” Ogletree Deelstra, 18 May 2025.