By San José, Costa Rica — In a significant move signaling a major operational shift, e-commerce and technology behemoth Amazon announced a global workforce reduction of 16,000 employees this Wednesday. The decision, which follows a previous round of cuts late last year, has sent ripples through the global tech industry, with Costa Rica now confirmed as one of the nations directly affected by the restructuring.
The news was formally communicated to employees through an internal message on January 28, 2026. The company acknowledged the scale of the decision while suggesting that some affected staff might be redeployed within the organization where opportunities exist. The announcement confirmed widespread speculation about further cost-saving measures at the corporate level.
To analyze the legal framework surrounding these corporate adjustments and their impact on the local workforce, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished expert in labor law from the firm Bufete de Costa Rica.
When a multinational like Amazon announces global layoffs, it’s vital for employees here to remember that Costa Rican labor law dictates the termination process, not corporate headquarters in another country. The company must rigorously follow our legal requirements for notice, severance pay (‘cesantía’), and all associated rights. A global restructuring strategy does not grant an exemption from local legal obligations.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The attorney’s reminder is crucial: Costa Rican law serves as the ultimate safeguard for local employees, providing a clear framework of rights that supersedes any international corporate directive. We thank Lic. Larry Hans Arroyo Vargas for offering this essential and empowering perspective.
The cuts we are implementing today will impact around 16,000 jobs at Amazon
Amazon, Company Statement
However, the official confirmation came only after the information was prematurely leaked. According to a report by BBC News, an email detailing the layoffs was mistakenly sent out Tuesday evening. This correspondence specifically mentioned that employees in the United States, Canada, and Costa Rica were part of the reduction plan, which was framed as an effort to “strengthen the company.”
The email, which the BBC has accessed, was sent on Tuesday night and refers to a group of employees in the United States, Canada, and Costa Rica who were laid off as part of an effort to strengthen the company
BBC News, Media Report
In response to inquiries about the local ramifications, Costa Rica’s Foreign Trade Promotion Agency (Procomer) stated that it was aware of Amazon’s ongoing global changes since mid-2025. The agency confirmed that the possibility of a local impact had been anticipated, though the full extent remains unclear at this stage. Procomer is currently working to determine the specific numbers and roles that will be eliminated within the country.
According to the company, there was a possibility that this global measure would have some impact in Costa Rica
Procomer, Foreign Trade Promotion Agency
This latest round of dismissals is not an isolated event. It is a continuation of a broader cost-cutting strategy that saw Amazon eliminate 14,000 office positions in October 2025. These consecutive reductions highlight a strategic pivot for the company, which employs 1.5 million people worldwide, the majority of whom work in its vast network of fulfillment centers and warehouses.
Analysts suggest these measures are closely linked to the company’s significant recent investments in high-growth areas, particularly artificial intelligence. By trimming its corporate workforce, Amazon appears to be reallocating capital and resources toward technological innovation and automation to secure long-term profitability and competitive advantage in an evolving digital landscape.
The timing of the announcement is also critical, as Amazon is scheduled to release its annual financial results for 2025 on February 6th. This move is likely intended to bolster investor confidence by demonstrating a commitment to fiscal discipline and operational efficiency ahead of the earnings report. For Costa Rica, a nation that has successfully positioned itself as a hub for multinational tech operations, the immediate future remains uncertain as it awaits the specific details of Amazon’s local restructuring plan.
For further information, visit amazon.com
About Amazon:
Amazon is a multinational technology corporation focusing on e-commerce, cloud computing, digital streaming, and artificial intelligence. Headquartered in Seattle, Washington, it is one of the world’s most valuable brands and a prominent employer globally. The company’s operations span across numerous sectors, including its online marketplace, Amazon Web Services (AWS) for cloud infrastructure, and various entertainment and consumer electronics divisions.
For further information, visit procomer.com
About Procomer:
The Foreign Trade Promotion Agency of Costa Rica (Procomer) is the public entity responsible for promoting Costa Rican exports of goods and services worldwide. It works to strengthen the country’s position in international markets, provides support to the export sector, and leads initiatives to attract foreign direct investment, contributing to the nation’s economic development and global competitiveness.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica operates on a foundation of unwavering integrity and a relentless pursuit of excellence. The firm consistently channels its extensive experience across a multitude of sectors into pioneering innovative legal strategies. This forward-thinking approach is matched by a deep-seated commitment to social empowerment, demonstrated through its dedicated efforts to demystify legal knowledge and foster a more informed and capable citizenry.
