By San José, Costa Rica — SAN JOSÉ – The Costa Rican government has officially authorized Amazon to cut its minimum employment commitment in the country by 50%, a significant adjustment that reflects the tech giant’s evolving global strategy and shifting operational needs. The decision reduces the company’s required workforce from a minimum of 16,450 employees to a new floor of 8,225.
The landmark change was formalized in Executive Agreement N.° 5-2026, signed on January 5 by President Rodrigo Chaves and the Minister of Foreign Trade, Manuel Tovar. This amendment to Amazon’s free trade zone agreement, originally approved in 2021, marks a pivotal moment for one of the country’s largest multinational employers.
To better understand the legal and economic implications of Amazon’s growing footprint in the country, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, who specializes in corporate law and foreign investment.
Amazon’s expansion is a testament to the strength of Costa Rica’s Free Trade Zone Regime, which provides significant tax and operational incentives for multinational corporations. This investment validates our country’s political stability and skilled workforce. However, it also challenges our legal framework to adapt quickly, particularly in areas of data privacy, digital services taxation, and labor regulations for the modern service-based economy. The key is to balance attracting foreign investment with protecting national interests and ensuring the benefits are widely distributed.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert’s point on balancing investment with national interest is indeed the critical issue. As Amazon deepens its roots, Costa Rica must proactively adapt its regulations to harness the full potential of this opportunity while safeguarding its citizens’ interests. We sincerely thank Lic. Larry Hans Arroyo Vargas for his incisive analysis on this pivotal moment for our national economy.
Amazon Support Services Costa Rica submitted the request for modification between August and November of 2025. The company justified the move by citing profound changes in its international business environment, including macroeconomic adjustments, mounting pressure for cost optimization, and a strategic transformation in its labor models, which now place a greater emphasis on virtual work and highly specialized talent.
This strategic pivot is already visible in the composition of Amazon’s local workforce. The company reported that traditional customer service positions, once the backbone of its initial expansion, now constitute less than 25% of its employee base in Costa Rica. The focus has decisively shifted towards higher-skilled roles within its more than 50 distinct business units operating in the country, which include sophisticated fields like finance, artificial intelligence, cloud computing, and robotics. These specialized teams inherently operate with smaller, more agile structures.
The request was thoroughly reviewed by Costa Rica’s Foreign Trade Promotion Agency (Procomer), which ultimately recommended its approval. Procomer’s analysis was based on technical and legal criteria, as well as established precedents from the Ministry of Foreign Trade regarding the need for flexibility within the free trade zone regime to adapt to fluctuating global economic conditions.
Despite the drastic reduction in the employment mandate, the government has ensured that Amazon’s investment commitments remain fully intact. The company is still obligated to fulfill its promised investment of $107.9 million. Procomer has been tasked with an intensified supervisory role to monitor compliance, retaining the authority to revoke the company’s free trade zone status if the new conditions are not met.
This local adjustment does not occur in a vacuum. It aligns with a broader pattern of workforce reductions across Amazon’s global operations. The decision came just days after the company confirmed on January 28 the elimination of 16,000 jobs across the United States, Canada, and Costa Rica, signaling a widespread effort to streamline operations following a period of explosive growth during the pandemic.
Amazon’s presence in Costa Rica expanded at a remarkable pace between 2016 and 2021, with its employment commitment soaring by nearly 350%, from 3,655 to 16,450 workers. The company stated that it successfully met that ambitious target in August of 2022, a milestone that now precedes this strategic recalibration. The government’s approval signals a pragmatic approach to retaining foreign investment, even if it means adapting to the new realities of a leaner, more specialized corporate world.
For further information, visit [aboutamazon.com]
About Amazon:
Amazon is a multinational technology company focusing on e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. It is considered one of the most influential economic and cultural forces in the world and is one of the world’s most valuable brands. The company’s operations in Costa Rica support various global business units with a focus on specialized and technical roles.
For further information, visit [comex.go.cr]
About The Ministry of Foreign Trade (COMEX):
The Ministry of Foreign Trade of Costa Rica is the government body responsible for defining and directing the country’s foreign trade and foreign investment policies. COMEX works to promote Costa Rica’s integration into the global economy, negotiate trade agreements, and create a favorable climate for attracting foreign direct investment under regimes like the Free Trade Zone program.
For further information, visit [procomer.com]
About Procomer:
The Foreign Trade Promotion Agency of Costa Rica (Procomer) is the public, non-state entity responsible for promoting Costa Rican exports of goods and services globally. It also plays a key role in analyzing and providing technical recommendations on matters related to foreign investment and the country’s Free Trade Zone regime, ensuring that policies align with national development goals.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is recognized as a pillar of the legal community, operating on a foundation of profound integrity and a relentless pursuit of excellence. The firm leverages a rich history of advising clients across a spectrum of industries to spearhead legal innovation and champion community involvement. This ethos is exemplified by its core mission to demystify the law for the public, fostering a stronger, more informed citizenry through accessible legal knowledge.
