Amazon to Lay Off 14,000 Corporate Employees in AI-Driven Restructuring

Tech Giant Aims to Streamline Operations Amid Heavy AI Investments
Amazon to Lay Off 14,000 Corporate Employees in AI-Driven Restructuring
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Updated on
2 min read

Amazon announced on Tuesday that it will cut approximately 14,000 positions from its global corporate workforce as part of a broader effort to adopt artificial intelligence and reduce operational layers.

The reductions target the company's roughly 350,000 corporate employees and follow earlier piecemeal layoffs across various divisions.

Affected workers received notifications via personal email early Tuesday, informing them that their roles were being eliminated.

The company plans to offer most impacted employees 90 days to seek internal positions, with recruiting teams prioritizing these candidates.

Those unable to transition will receive severance and support services.

Job cuts span multiple areas, including devices, advertising, Prime Video, human resources, and Amazon Web Services.

Amazon stated it will continue hiring in select areas while reducing headcount in others into 2026.

The initiative addresses over-hiring during the pandemic peak and aims to compensate for slower growth in certain segments.

Senior vice president Beth Galetti noted in an internal message that the changes would enable faster team operations and resource allocation to key priorities.

The company expects to report third-quarter earnings on Thursday, with capital expenditures projected at about $118 billion this year, largely for AI and cloud infrastructure.

AI's Role in Workforce Changes

Chief Executive Andy Jassy had signaled in June that increased AI tool usage would lead to corporate job reductions by automating routine tasks.

Galetti described AI as the most transformative technology since the Internet, enabling rapid innovation.

The layoffs provide insight into AI's potential broad impact on employment.

Separately, U.S. Senator Bernie Sanders urged Amazon founder Jeff Bezos to address potential automation-related job losses, citing reports of up to 500,000 positions at risk in warehouses.

Two senators also questioned Amazon's reliance on H-1B visas amid domestic cuts.

Amazon's shares rose marginally in premarket trading, though the stock has underperformed among major tech peers this year.

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