Amazon Fresh Shutters Over a Dozen Stores, Cutting 1,545 Illinois Jobs

The closures were part of 2,000 total layoffs across the state in January.

Published on Feb. 18, 2026

Got story updates? Submit your updates here. ›

Amazon laid off 1,545 Illinois employees in January, most of the 2,000 total layoffs across the state that month. The job losses were driven by Amazon closing over a dozen Amazon Fresh and Amazon Go stores across Illinois.

Why it matters

These layoffs highlight the challenging business climate in Illinois, which has dropped to 38th in a nationwide ranking of business tax climate. The state needs to enact reforms to improve its economic situation and prevent future large-scale job losses.

The details

The layoffs were concentrated in Chicago's suburbs, in Cook, DuPage and Will counties. Breaking down the January layoffs, 1,902 were due to outright store closures, while only 152 were standalone layoffs not tied to a full closure. Other major layoffs in January included 253 in iron and steel manufacturing and 109 at wireless carrier T-Mobile.

  • The layoffs occurred in January 2026.

The players

Amazon

An American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.

Illinois Policy Institute

A nonpartisan research organization that promotes free market principles, limited government, and responsible government spending in Illinois.

Got photos? Submit your photos here. ›

What’s next

Illinois lawmakers will need to consider comprehensive reforms to improve the state's economic situation and prevent future large-scale job losses, such as reducing excessive occupational licensing, expanding school choice, lowering property taxes, and investing more in apprenticeship programs.

The takeaway

The Amazon Fresh layoffs in Illinois highlight the state's challenging business climate, which has declined in national rankings. Policymakers will need to enact reforms to make Illinois more attractive for businesses and workers to prevent similar large-scale job losses in the future.