Amazon to cut about 14,000 corporate jobs as AI-driven restructuring reshapes the company.
Amazon is set to cut approximately 14,000 corporate positions as part of a wider organizational restructuring, the company announced Tuesday. Framing the decision as a preparation for an "era reshaped by artificial intelligence", Amazon executives outlined the changes in a memo to employees.
Beth Galetti, Amazon’s senior vice president for people experience and technology, detailed the rationale behind the layoffs, stating, "The reductions we’re sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets and what matters most to our customers’ current and future needs."
The cuts will impact roughly 4% of Amazon’s 350,000-person corporate workforce. While the company continues to hire in select areas, Galetti emphasized that these changes are necessary to adapt to evolving priorities.
Reshaping roles in the age of AI
Amazon’s restructuring comes as part of its broader strategy to integrate artificial intelligence technologies into its operations. CEO Andy Jassy has previously highlighted the role of generative AI and autonomous software agents in shaping the company’s future. He noted that these advancements will allow Amazon to automate certain jobs and reallocate talent to focus on emerging technologies.
This announcement follows previous layoffs in 2023, when Amazon eliminated 27,000 positions across its retail, human resources, and cloud computing divisions. Analysts view these measures as indicative of larger trends within the tech sector, where companies are responding to investor demands for efficiency while preparing for technological shifts fueled by AI.
Neil Saunders, managing director of GlobalData, described the moment as "a tipping point away from human capital to technological infrastructure" in a note to investors.
Support for affected employees
Amazon has outlined support measures for employees impacted by the layoffs. The company stated that most affected staff members will have 90 days to seek new roles internally. Those unable to secure new positions within this timeframe will receive severance pay, outplacement services, and health benefits.
The layoffs are part of a larger reduction plan, with reports suggesting that Amazon could cut up to 30,000 positions overall this week. These steps reflect the company’s efforts to streamline operations while positioning itself for an AI-driven future.
As Amazon navigates this significant transition, the restructuring underscores the growing influence of artificial intelligence on workforce dynamics within the tech industry.
