Amazon has announced plans to cut around 14,000 corporate jobs worldwide as part of a major restructuring aimed at streamlining operations and accelerating its push into artificial intelligence (AI).
The move, confirmed by the tech giant on Tuesday, is part of what the company described as an effort to become “more leanly organised” in order to take full advantage of opportunities presented by AI. Earlier reports had suggested that as many as 30,000 jobs might be at risk.
In a memo to employees, Beth Galetti, Amazon’s senior vice president, said the decision was designed to make the company “even stronger” by shifting resources toward its most strategic priorities. “This will ensure we’re investing in our biggest bets and what matters most to our customers’ current and future needs,” she wrote.
Galetti acknowledged that some employees might find the cuts difficult to understand given the company’s solid financial performance. However, she said the move was necessary because AI represented “the most transformative technology we’ve seen since the Internet” and was enabling companies “to innovate much faster than ever before.”
“We’re convinced that we need to be organised more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business,” she added.
The company said it was working to support employees whose roles will be eliminated, offering opportunities to apply for other positions within Amazon. Those unable to find new roles will receive severance packages and additional transition assistance.
The firm has not yet confirmed how many of the job losses will occur in the UK. Amazon employs over 1.5 million people globally, including around 350,000 in corporate positions such as management, sales, and executive roles, according to figures submitted to the US government last year.
The job cuts mark the latest in a series of cost-cutting measures under CEO Andy Jassy, who has been refocusing the company’s spending since taking over from founder Jeff Bezos in 2021. During the Covid-19 pandemic, Amazon significantly expanded its workforce to meet the surge in demand for online shopping and cloud services.
However, with growth now stabilising and AI technology reshaping the industry, Jassy has signalled a shift toward automation and efficiency. Speaking in June, he said the rise of AI tools would inevitably change the company’s employment structure. “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.
The latest round of layoffs underscores how Amazon, like many major tech firms, is realigning its business model to adapt to a rapidly evolving AI-driven economy.
