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    Amazon Continues Layoffs Amid Expanding AI Investments, India Push

    Amazon Continues Layoffs Amid Expanding AI Investments, India Push

    The layoffs come even as Amazon continues to significantly expand its investments in AI and cloud infrastructure globally.

    Amazon Continues Layoffs Amid Expanding AI Investments, India Push
    Merin Susan John··Updated OCTOBER 17, 2026, 10:24 AM
    5 min

    Amazon has reportedly cut more jobs this week, with layoffs impacting employees within its Selling Partner Services (SPS) division, according to a report by Business Insider. The SPS unit works closely with millions of third-party merchants selling on Amazon’s marketplace, assisting with onboarding, logistics, and account support.

    The latest cuts follow nearly 30,000 layoffs announced across multiple waves since late last year. Earlier this year, Amazon had also reduced a small number of roles within its robotics division. While the company did not disclose the exact number of employees affected this week, it described the layoffs as impacting a “relatively small number” of roles.

    Amazon reportedly said it routinely reviews its organisational structure to align with long-term priorities and added that impacted employees would receive healthcare support, severance packages, and job placement assistance.

    The layoffs come even as Amazon continues to significantly expand its investments in AI and cloud infrastructure globally. CEO Andy Jassy has repeatedly stressed efficiency, automation, and leaner operations as key priorities for the company.

    Amazon has been aggressively integrating AI across retail operations, logistics, customer support, advertising, and AWS. The company has also expanded its investments in custom AI chips such as Trainium and Inferentia, while deepening its partnership with AI startup Anthropic as part of its broader generative AI strategy.

    The company has simultaneously strengthened its ambitions in India. At the recent AWS Summit Bengaluru 2026, Amazon announced an additional $35 billion investment in India by 2030. This comes on top of the nearly $40 billion it has already invested in the country, taking Amazon’s total planned investment in India to approximately $75 billion by the end of the decade.

    Amazon said the investments would support cloud infrastructure, AI innovation, logistics, data centres, and the expansion of digital services in India, positioning the country as a major hub in its global AI and cloud strategy.


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