Amazon Announces 14,000 Corporate Job Cuts in Major AI-Driven Restructuring
Amazon is eliminating approximately 14,000 corporate positions in its largest round of layoffs since 2023, as the company intensifies its focus on artificial intelligence and cost-cutting measures.
Key Takeaways
- 14,000 corporate jobs being cut (roughly 4% of corporate workforce)
- Layoffs announced Tuesday with 90-day internal job search period
- Departments affected include devices, advertising, Prime Video, HR, operations, Alexa, and AWS
- Part of broader AI push and cost management strategy under CEO Andy Jassy
Notification and Severance Details
According to Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, affected employees received notifications on Tuesday. Workers have 90 days to find new roles within Amazon before receiving severance packages, outplacement assistance, and continued health benefits.
Some employees told Reuters they received termination notices via personal email early Tuesday, informing them they were no longer required to work for the company.
Strategic Shift Toward AI Automation
CEO Andy Jassy, who has spearheaded cost-cutting initiatives since 2021, previously indicated that generative AI advancements would likely reduce Amazon’s corporate workforce by automating routine functions. The company currently employs about 350,000 corporate staff and 1.56 million people overall.
Jassy has emphasized Amazon’s focus on streamlining operations while continuing to hire in high-priority areas like and AI development.
Major AI Infrastructure Investments
The job cuts coincide with Amazon’s massive AI and cloud infrastructure expansion, including multibillion-dollar data center projects in North Carolina, Indiana, Mississippi, and Ohio. The company has committed approximately $10 billion to build a new AI-focused campus in North Carolina.
Broader Business Context
While Amazon’s stock has shown modest gains this year, it remains the weakest performer among major U.S. tech companies. Industry analysts view the layoffs as part of Amazon’s ongoing effort to balance aggressive AI expansion with tighter cost management amid economic uncertainty.
Jassy has also implemented an anonymous internal feedback system that has identified hundreds of process improvements across the organization.
