Amazon is reportedly continuing its significant workforce reduction, with a notable impact on its engineering staff. As part of a broader restructuring and strategic shift towards artificial intelligence, recent data indicates that engineers have borne a substantial portion of the layoffs. In key states, approximately 40% of the cuts have affected engineering roles. These reductions are part of a larger plan to downsize and realign the company's focus and resources towards its growing AI initiatives. While the company has also announced investments in employee benefits for its fulfillment and transportation divisions, the layoffs in its tech-focused departments are expected to continue into the new year, with more cuts anticipated in January 2026.