Amazon Slashes 14,000 Corporate Jobs in Major AI-Driven Restructuring

Amazon announced on Tuesday that it will cut approximately 14,000 corporate positions, marking one of the largest workforce reductions in the company's history as it intensifies its focus on artificial intelligence. The layoffs represent about 4% of Amazon's corporate workforce, which totals around 350,000 employees out of a global workforce of over 1.54 million. This move is part of a broader effort to reduce expenses, streamline operations, and reallocate resources toward AI projects.

According to company statements, the job cuts aim to eliminate red tape and reduce management layers, enabling faster decision-making. Beth Galetti, Amazon's head of people operations, described AI as "the biggest technology shift since the internet arrived," emphasizing its potential to accelerate product development. CEO Andy Jassy, who took over in 2021, had previously indicated in June that AI adoption would diminish the need for certain roles while creating new ones. He has been driving cost-cutting measures since his tenure began, with Amazon eliminating 27,000 positions from 2022 to 2023, followed by smaller rounds of layoffs.

Earlier reports had suggested cuts could reach 30,000 jobs, but Amazon confirmed the lower figure. The company has been trimming staff across divisions like books, devices, services, and the Wondery podcast unit, reflecting a post-pandemic adjustment after rapid hiring during COVID-19. This year, Amazon plans to invest $100 billion in AI technology, as investors seek proof that its cloud and AI operations can compete with rivals. The restructuring aligns with industry trends, where tech, banking, and retail firms are leveraging AI to automate tasks and improve efficiency, potentially reducing human labor needs.

Amazon will release its third-quarter financial results soon, amid pressure to demonstrate profitability while funding AI innovations. The company did not specify timelines or regions for the layoffs but noted that more cuts may occur next year, even as it hires in priority areas.