Amazon is preparing to eliminate 49,000 desks (about 14 million square feet of office space) from its global office portfolio, marking one of the most significant changes in its real estate strategy since launching its high-profile HQ2 search in 2017.
The company had approximately 40.2 million square feet of office space in the United States and another 28.3 million square feet internationally at the end of 2025, according to BisNow.
The plan was outlined during an internal meeting with members of Amazon’s global real estate and facilities team in early February, according to a transcript first reported by the Puget Sound Business Journal and later confirmed by a source familiar with the discussion.
Vacancy Reduction Target
Amazon is aiming to reduce its average office vacancy rate from roughly 31% to just under 23% this year. Leadership indicated the longer-term goal is closer to 11%, signaling that additional adjustments could follow.
To reach its near-term target, the company plans to rely on lease expirations, subleases, selective terminations, and temporarily “hibernating” certain locations. Executives also acknowledged that the company accumulated excess space in anticipation of its return-to-office push and amid changes in headcount strategy.
At the same time, the retrenchment is not uniform. Management outlined plans to add roughly 1.8 million square feet of new office space in select markets this year, suggesting a geographic reshuffling rather than a blanket retreat.
AI Investment Alters Workplace Strategy
The footprint reduction comes as CEO Andy Jassy has signaled a dramatic escalation in artificial intelligence investment. During a recent earnings call, he told investors the company expects to spend approximately $200 billion on AI initiatives in 2026. Weeks later, Amazon announced a separate $50 billion investment in OpenAI.
Amazon has already reduced its workforce by roughly 30,000 positions across two layoff rounds in October and January. Leadership has framed the cuts as part of an effort to streamline management layers and capture efficiencies tied to AI deployment.
In prior internal communications, Jassy indicated that generative AI and autonomous agents would change how work is performed across the company, reducing demand for some roles while increasing demand for others.
Return-to-Office Meets Automation
Under Jassy, Amazon has been among the most forceful large employers in reinstating in-person work. The company largely eliminated hybrid arrangements at the start of 2025 and previously required thousands of employees to relocate closer to core offices to strengthen team collaboration.
Now, as automation alters workflow and headcount needs, the company is recalibrating the amount and type of space it requires.
Real estate decisions are increasingly tied not just to attendance policies but to how AI reshapes organizational structure, productivity, and team design. For Amazon, that means fewer desks overall—while still expanding in markets deemed strategically critical.
