Amazon has announced plans to cut 14,000 corporate jobs, marking its second-largest round of layoffs after slashing 22,000 positions in 2022. The move comes as the company restructures its operations to streamline management and invest more aggressively in artificial intelligence.
Amazon declined to specify which divisions were most affected, but reports indicate the cuts span video games, logistics, payments, and cloud computing teams. The reduction represents roughly 4% of its corporate workforce, which numbers over 360,000 employees out of a total staff of 1.2 million.
The company confirmed the layoffs took effect Tuesday, following a Reuters report suggesting as many as 30,000 positions could be eliminated.
In an internal memo, Beth Galetti, Amazon’s senior vice president of people experience and technology, said the layoffs reflect the company’s focus on adapting to rapid changes brought by AI.
“This generation of AI is the most transformative technology we’ve seen since the Internet,” Galetti wrote. “We’re convinced that 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 CEO Andy Jassy had hinted at this shift in June, telling staff that as the company rolled out more AI agents, it would likely “need fewer people doing some of the jobs that are being done today.”
Amazon has spent $55.6 billion in the first half of its current fiscal year on technology infrastructure to support its Amazon Web Services (AWS) cloud division — a cornerstone of its AI ambitions. AWS accounted for 18% of the company’s total net sales of $167.7 billion in the last quarter, a 13% year-over-year increase.
As part of this broader transformation, Amazon plans to keep cutting management layers through 2026 while hiring in key growth areas, particularly those tied to AI and cloud computing.
Support for Affected Employees
Amazon said affected employees will receive 90 days to apply for internal roles, with recruiters prioritizing internal candidates. Those unable to find new positions will be offered severance pay, health coverage, and outplacement services.
The company characterized the decision as a long-term move to improve speed and efficiency, even as its overall business performance remains strong.
“We’re performing well,” Galetti wrote, “but the world is changing quickly.”
Featured image credits: GONZALO FUENTES/REUTERS
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