Amazon to Cut 14,000 Corporate Jobs Amid AI Push

Amazon plans to cut around 14,000 corporate jobs globally to streamline operations and focus on artificial intelligence investments. The company will support affected employees with internal reassignment or severance. The move follows prior layoffs and reflects a broader tech trend of using AI to boost efficiency, though it raises concerns about job losses.

Amazon has confirmed plans to reduce its global corporate workforce by approximately 14,000 roles as part of a broader strategy to become “organized more leanly” and prioritize investments in artificial intelligence (AI). The company said the move is intended to strengthen its operations by focusing resources on its most important initiatives and ensuring it can meet both current and future customer needs. Senior Vice President Beth Galetti emphasized in a note to staff that AI represents “the most transformative technology we’ve seen since the Internet,” enabling companies to innovate faster than ever before, and that restructuring the workforce is necessary to adapt to this technological shift.

Galetti acknowledged that some might question the decision given Amazon’s strong financial performance. In its second-quarter results released in July, the company reported a 13% year-on-year increase in sales to $167.7 billion, surpassing Wall Street expectations. However, she argued that AI adoption requires the company to operate more efficiently, with fewer layers of management and more ownership at every level, to move quickly and deliver value to customers.

Amazon said it is committed to supporting all employees affected by the layoffs. This includes helping them find new roles within the company and providing transition support, such as severance pay, for those who cannot be reassigned. The corporate division, which includes around 350,000 employees in executive, managerial, and sales roles, is the focus of the cuts. Amazon’s total workforce across warehouses and offices worldwide exceeds 1.5 million employees.

The job reductions come after a period of aggressive hiring during the Covid-19 pandemic, when Amazon expanded its workforce to meet the surge in demand for online shopping and digital services. Since then, CEO Andy Jassy has prioritized reducing spending and increasing efficiency while heavily investing in AI tools. Jassy has previously warned that AI adoption would likely lead to job reductions as machines take over routine tasks, while creating opportunities in other roles that require human skills and oversight.

Amazon has undergone several rounds of corporate layoffs in recent years. In 2022, the company cut approximately 27,000 positions over several months as it, like many tech rivals, adjusted to post-pandemic market conditions. The latest reductions follow subdued profit guidance and slower growth in Amazon Web Services (AWS) compared to competitors such as Microsoft and Google, raising concerns among investors about the returns on the company’s substantial AI investments.

Industry analysts note that Amazon’s actions reflect a wider trend in the technology sector, where AI is reshaping workforces and prompting companies to redistribute labor. Ben Barringer, a technology analyst at Quilter Cheviot, said that jobs in software development are already being reduced due to AI tools, and major companies are likely to continue restructuring their workforces accordingly. He added that data-driven AI applications, while enhancing efficiency and innovation, inevitably result in some job losses.

Amazon is set to report its financial results for the quarter ending 30 September, which will provide further insight into how the company’s investment in AI and workforce adjustments are affecting its performance and strategy moving forward. The 14,000 planned corporate job cuts represent a significant step in Amazon’s ongoing efforts to adapt to technological change, streamline operations, and maintain competitiveness in a rapidly evolving market.