Amazon has confirmed plans to cut approximately 14,000 roles in its global corporate division as part of a broader effort to reorganize more efficiently and invest in artificial intelligence (AI).
The tech giant said the move will allow the company to focus resources on “our biggest bets and what matters most to our customers’ current and future needs,” according to Beth Galetti, Amazon’s senior vice president, in a note to staff. She added that the company aims to become “even stronger” by reducing layers and increasing ownership to move faster.
The cuts follow previous layoffs in the corporate division, including around 27,000 job losses in 2022. Earlier reports had suggested up to 30,000 jobs could be affected this time.
Amazon, which employs more than 1.5 million people worldwide, including around 350,000 corporate staff, said it is providing support for those impacted. Employees will have access to internal job opportunities and “transition support,” including severance pay if needed.
The decision comes as AI becomes central to Amazon’s operations. Galetti described AI as “the most transformative technology we’ve seen since the Internet,” enabling companies to innovate faster than ever. CEO Andy Jassy previously noted that the rise of AI tools would reduce the need for certain routine roles while creating new types of positions.
Amazon’s business performance remains strong. In July, the company reported second-quarter sales of $167.7 billion (£125 billion), a 13% increase year-on-year, surpassing Wall Street expectations. However, slower growth in its cloud division, Amazon Web Services (AWS), and ambitious AI investments have prompted a focus on efficiency.
Industry analysts say the move reflects broader trends in the tech sector. Ben Barringer, a technology analyst at Quilter Cheviot, told the BBC: “We are already seeing jobs in software development be shed thanks to the capabilities of some of these AI tools. Big companies will be looking to redistribute and restructure their workforces accordingly. Unfortunately, job losses are inevitable.”
Amazon is expected to release its financial results for the quarter ending September 30 later this week, which will be closely watched as the company navigates its AI transformation and corporate restructuring
