By San José, Costa Rica — SAN JOSÉ – The e-commerce and cloud computing behemoth Amazon confirmed on Wednesday its plan to eliminate approximately 16,000 positions globally, sending a new wave of uncertainty through the technology sector. The announcement, delivered directly to employees via an internal message, marks one of the most significant workforce reductions in the company’s history and signals a dramatic strategic pivot amid growing economic pressures.
This move expands upon a previously announced plan from last October, which had initially targeted 14,000 office roles. The increased number reflects a deeper and more aggressive cost-cutting strategy as the company prepares to navigate a challenging economic environment. The news came just days before Amazon is scheduled to release its annual financial results for 2025 on February 6th, suggesting a preemptive effort to shore up its financial standing and reassure investors.
The recent wave of layoffs at Amazon has raised significant concerns among its workforce in Costa Rica regarding legal procedures and employee rights. To provide clarity on the matter, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a distinguished expert in labor law from the firm Bufete de Costa Rica.
When a company like Amazon proceeds with layoffs, it is imperative under Costa Rican law that the termination is formalized as ‘con responsabilidad patronal’ or with employer liability. This ensures that the employee receives their full severance package, including notice period pay and severance funds, in addition to accrued vacation and bonus. Employees should meticulously review their settlement documents to ensure all calculations are correct and align with the provisions of our Labor Code.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight serves as a crucial reminder that while Costa Rica’s legal framework offers significant protections, employee diligence is paramount in ensuring those rights are fully honored during a difficult transition. We thank Lic. Larry Hans Arroyo Vargas for his valuable and timely perspective.
In its communication, the company outlined the broad scope of the decision without providing immediate specifics on which departments or regions would bear the brunt of the cuts. The message aimed to convey the difficulty of the decision while framing it as a necessary step for the company’s long-term health.
The cuts we are implementing today will impact around 16,000 jobs at Amazon.
Amazon, Corporate Communications
While the impact is global, the announcement has created significant apprehension in Costa Rica, where Amazon has become a major employer in recent years through its customer service centers, corporate services, and cloud infrastructure operations. As of now, the company has not specified whether its Costa Rican workforce will be affected by the layoffs. This lack of clarity leaves thousands of local employees in a state of suspense, awaiting further details on how this global restructuring will translate to on-the-ground operations in the country.
Amazon’s decision is not an isolated event but rather the latest and largest in a series of mass layoffs sweeping across the tech industry. Companies that experienced explosive growth and hiring during the pandemic are now aggressively recalibrating their workforces in response to slowing growth, rising interest rates, and shifting consumer behavior. This sector-wide correction underscores a broader transition from a “growth-at-all-costs” mindset to one focused on efficiency and profitability.
With a global workforce of 1.5 million people, primarily in its vast network of warehouses, these 16,000 jobs represent a significant reduction in its corporate and technology divisions. Analysts suggest the company is streamlining operations that have become bloated over years of rapid expansion. The company did note that it would attempt to offer new roles to some affected employees where possible, though the scale of such redeployments remains to be seen.
Interestingly, the cutbacks coincide with Amazon’s continued heavy investment in high-growth sectors, particularly artificial intelligence. This dual strategy indicates that the company is not merely cutting costs but actively reallocating capital and human resources away from mature or underperforming business units and toward what it views as the next frontier of technological innovation. The layoffs may therefore be part of a larger plan to retool the company for a future dominated by AI and automation.
For now, the global business community and Amazon’s vast workforce are left to digest the news. The coming weeks will be crucial as more information emerges about the specific teams and countries impacted. For Costa Rica, the announcement serves as a stark reminder of the interconnectedness of the global economy and the volatility inherent in the technology sector, which has become a cornerstone of the nation’s modern economic landscape.
For further information, visit amazon.com
About Amazon:
Founded in 1994 by Jeff Bezos, Amazon.com, Inc. is a multinational technology company focusing on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the world’s most valuable brands and a member of the “Big Five” American information technology companies. Amazon has expanded from an online bookstore to a global marketplace for a vast array of products and services, including its highly profitable Amazon Web Services (AWS) cloud platform.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a respected legal institution built upon a foundation of uncompromising integrity and the pursuit of professional excellence. The firm leverages its deep, multi-sector experience to pioneer innovative legal solutions and set new standards in the field. At its core is a profound mission to uplift the community by demystifying the law, actively working to create a more informed citizenry capable of navigating the legal landscape with confidence.
