As one of the world’s most influential companies, Amazon’s moves reverberate across tech, retail, logistics, and global commerce. In 2026, the company isn’t just tweaking its approach – it’s reshaping key parts of its business to adapt to a rapidly changing market. Below are the major developments unfolding this year:
Major Workforce Restructuring and Layoffs
One of the most significant developments for Amazon in 2026 has been the continuation of a massive restructuring effort that began in late 2025. The company announced it would cut approximately 16,000 corporate jobs, marking a second round of layoffs following the reduction of 14,000 positions in October. Together, these reductions bring the total to around 30,000 corporate roles affected, the largest corporate cut in the company’s history.
Amazon says the layoffs are part of a broader effort to reduce bureaucracy, increase ownership, and flatten its management structure, a strategy aimed at boosting operational efficiency and agility. Support such as severance pay, health benefits, and internal job search options for U.S. employees have been included in transition packages.
Expanding AI and Product Innovation
- Alexa+ and AI-Driven Services: Amazon is integrating artificial intelligence more deeply into its ecosystem. A major example is Alexa+, an AI-powered upgrade to the traditional Alexa voice assistant. It’s now rolling out more widely to Amazon Prime members and even integrating into mobile browsers and Alexa.com, bringing advanced AI conversational abilities beyond just voice-activated devices. This more conversational AI assistant aims to handle complex requests, act like a chatbot, and integrate with calendars, smart home systems, and third-party services.
- Fire TV and Entertainment Experience Redesign: At CES 2026, Amazon unveiled a major update to its Fire TV platform, featuring a redesigned interface that simplifies navigation and prioritizes content discovery. New premium Fire TV hardware, including the Amazon Ember Artline is also part of this refresh. These content-focused changes are meant to keep Fire TV competitive in a crowded streaming market.
Retail Strategy Recalibration
Although Amazon once seemed poised to dominate physical retail, some of those ambitions are shifting:
- Amazon Go and Amazon Fresh store closures: According to multiple industry reports, most Amazon Go and Fresh stores are slated to close in 2026, with a handful of California locations remaining open. Meanwhile, the biometric Amazon One palm-reader payment system will be retired by June 3, 2026.
- Physical Retail Innovation: At the same time, Amazon continues to experiment with checkout-free solutions like portable Just Walk Out technology for events and temporary venues, part of its long-term retail tech portfolio.
- Big-Box Store Plans: While not yet in 2026, Amazon has plans to open large superstore formats in 2027, a pivot toward classic big-box retail that could compete more directly with Walmart and Costco.
Changes Affecting Marketplace Sellers
For third-party sellers on Amazon’s marketplace, 2026 is also a year of impactful policy shifts:
- Fulfillment by Amazon (FBA) Changes: Amazon will discontinue its prep and labeling services in the U.S., a move that places more responsibility on sellers to meet compliance standards before sending inventory to Amazon warehouses.
- Sponsored Ads and AI-Driven Advertising Features: Amazon is updating how Sponsored Brands ads work, allowing a single ad to feature 3–10 products with AI-guided automated selection based on shopper intent.
These changes reflect Amazon’s broader push toward automation, shifting operational burden to sellers while leveraging AI to optimize discovery and conversion.
Logistics and Partnerships in Flux
Although not always highlighted in company announcements, Amazon’s shipping and delivery partnerships are also evolving. Ongoing discussions with the U.S. Postal Service about the future of their contract have made headlines, with Amazon exploring options ahead of its USPS agreement’s expiration.
This speaks to Amazon’s continual recalibration of logistics, balancing internal networks with external carriers to manage delivery costs and efficiencies.
2026 isn’t just another year for Amazon, it’s one of realignment and reinvention. From workforce reshaping and AI expansion to tactical changes in retail formats and seller policies, the company is adapting to competitive pressures and technological shifts that define the mid-2020s. While some changes pose challenges, like layoffs and operational burdens for sellers, others open doors for more sophisticated AI experiences and streamlined services.
If you’re an Amazon customer, seller, employee, or investor, keeping an eye on these developments will be essential, because Amazon’s moves don’t just affect one business, they often signal broader shifts across technology and commerce.