After Amazon, Netflix Also Faces Layoffs... Why Are Cuts Spreading Across U.S. Tech Companies?

Amazon Cuts About 30,000 Jobs Since October Last Year
About 800 Netflix Employees Could Also Be Affected
As AI Investment Grows and Streaming Competition Intensifies

U.S. technology and media companies are continuing to restructure their workforces as increased investment in artificial intelligence (AI), efforts to improve cost efficiency, and intensifying market competition converge. Amazon recently carried out another round of layoffs, while Netflix is reportedly considering a plan to cut about 5% of its total workforce.

Local media reported on October 8 that Amazon had made additional cuts, primarily in its Stores division, which oversees its e-commerce business. The cuts reportedly affected fewer than 1,000 employees across several teams, including customer service and seller support. Employees in India and the United Kingdom, as well as the United States, were also reportedly notified of their dismissal.

Amazon logo. Yonhap News.

The latest move follows large-scale layoffs that ran from October 2025 through January 2026. Amazon cut about 30,000 employees in its corporate workforce during that period, including 16,000 who were laid off in January 2026. The company said the recent restructuring was intended to align its business teams with its top priorities.

Netflix is also considering workforce reductions. On October 9, Puck, a U.S. publication covering the entertainment industry, reported that Netflix was pursuing a plan to cut about 5% of its total workforce. The layoffs could be announced as early as mid-October. Netflix declined to comment on the report.

Netflix reportedly had about 16,000 employees at the end of last year. If the reduction is set at 5%, about 800 employees could be affected. However, the specific number of layoffs and the departments involved have not yet been officially confirmed. The Los Angeles Times reported that creative teams could also be included in the cuts.

In a recent interview, Amazon founder and board chair Jeff Bezos said the company's workforce had grown excessively during the COVID-19 pandemic as demand for e-commerce surged. With more consumers staying home and online orders rising sharply, Amazon expanded its workforce significantly at the time. But the market environment later changed, creating a need to reorganize the company, he said.

Netflix logo. Yonhap News Agency

Netflix also faces pressure to respond to intensifying competition in the streaming market and demands for growth. In addition to its subscription business, it is diversifying its revenue streams by expanding into areas such as ad-supported plans, live content, and games. As YouTube expands its influence over viewing time and the advertising market, and other media companies continue to consolidate, retaining subscribers and securing viewing time have become key challenges.

Increased investment in AI is also linked to the wave of layoffs. Amazon is committing substantial funds to data centers, its own AI chips, and cloud infrastructure. The company is also adopting automation to improve work efficiency while continuing to reorganize its workforce and teams.

Foreign media outlets have reported that layoffs have continued across multiple industries, including technology, since the start of the year, and have said that AI adoption and increased investment are among the factors driving workforce restructuring.

This content was produced with the assistance of AI translation services.