Amazon has confirmed it will eliminate approximately 14,000 corporate positions worldwide as part of a major restructuring aimed at strengthening its focus on artificial intelligence (AI). The tech giant says the move will make it leaner and more agile as it seeks to capitalize on the transformative power of AI.
The announcement, made in a memo by Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, stated that the job reductions are intended to help the company “invest in our biggest bets” and better align with the evolving needs of customers. Galetti acknowledged that the company continues to perform well financially but emphasized the need to reorganize to remain competitive in the AI era.
Amazon’s latest financial results reflect strong performance, with second-quarter revenue rising 13% year over year to $167.7 billion—beating Wall Street expectations. Despite this growth, executives believe streamlining operations is essential for long-term sustainability. “AI is the most transformative technology we’ve seen since the Internet,” Galetti wrote. “We need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible.”
The cuts primarily affect corporate staff—around 350,000 globally—rather than warehouse or logistics employees. Those impacted will be offered severance packages, job placement support, and the opportunity to apply for new roles within the company.
Amazon CEO Andy Jassy has previously hinted that increased use of AI would lead to workforce changes, noting that automation will replace some routine tasks while creating new roles in emerging areas. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” he said earlier this year.
As Amazon accelerates its AI integration, the layoffs underscore a broader industry trend: technology firms are reorganizing to harness AI’s potential, even if that means painful short-term adjustments for thousands of employees.
