Crystal Dike
Amazon has announced plans to cut about 14,000 jobs from its global corporate workforce, citing the need to become “more leanly organized” as it pivots toward artificial intelligence (AI).
The tech giant confirmed the layoffs on Tuesday, noting the reductions will affect corporate roles across its offices worldwide. Earlier reports had suggested up to 30,000 job cuts were being considered.
In a memo to staff, Beth Galetti, Amazon’s Senior Vice President, said the restructuring would make the company “even stronger” by redirecting resources to its most promising ventures and customer priorities.
Galetti acknowledged the company’s strong financial performance but said AI is transforming operations at an unprecedented pace. “AI is the most transformative technology we’ve seen since the Internet,” she said. “We need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.”
Amazon said it will support affected employees by helping them find new positions within the company. Those unable to do so will receive severance and transition support.
The company, which employs more than 1.5 million people globally—including around 350,000 in corporate roles—has undergone several rounds of layoffs since 2022, when it cut about 27,000 positions.
CEO Andy Jassy has previously warned that AI advancements would lead to workforce reductions as machines take over routine tasks. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy said in June.
Amazon reported stronger-than-expected second-quarter results in July, with a 13% year-on-year sales increase to $167.7 billion. However, analysts have noted slower growth in its cloud division, Amazon Web Services (AWS), compared to rivals Microsoft and Google.
The company is expected to release its latest quarterly results on Thursday, October 30, for the period ending September 30.
Industry experts say Amazon’s move reflects a broader trend across the tech sector. “The big companies are restructuring their workforces as AI tools become more capable,” said Ben Barrington, a technology analyst at Quilter Cheviot. “Job losses are inevitable as they apply AI more broadly.”