WORLD NEWS
Amazon (AMZN.O) announced on Tuesday that it will cut approximately 14,000 corporate jobs globally, marking one of its largest workforce reductions to date. The move is part of a sweeping restructuring effort fueled by artificial intelligence (AI) adoption and cost-cutting measures.
According to sources, the online retail giant began notifying employees across multiple divisions, including devices, advertising, Prime Video, human resources, and Amazon Web Services (AWS). The layoffs are part of a broader plan, first reported by Reuters, which could ultimately see as many as 30,000 positions eliminated.
In an internal email sent early Tuesday morning, Beth Galetti, Senior Vice President of People Experience and Technology, informed affected workers that their roles were being eliminated. “You are no longer required to perform work on Amazon’s behalf,” the message read, offering the option to meet HR representatives via video call.
Amazon stated that most laid-off employees will receive a 90-day non-working period to apply for other internal roles, with recruiting teams prioritizing their applications.
The job cuts come as Amazon seeks to offset the effects of over-hiring during the COVID-19 pandemic and adjust to slowing growth in several business segments. CEO Andy Jassy has repeatedly emphasized the transformative role of AI in reshaping operations, noting in June that automation would reduce the need for some corporate roles by streamlining repetitive tasks.
Amazon currently employs around 1.56 million people globally, including roughly 350,000 in corporate roles. Despite the layoffs, Galetti noted that the company would continue hiring in certain growth areas while reducing headcount in others through 2026.
Over the past two years, Amazon has implemented smaller waves of layoffs across its books, devices, and podcast divisions. Executives say these changes have helped improve efficiency and decision-making speed.
Meanwhile, the company’s stock rose slightly in premarket trading but remains the weakest performer among the “Magnificent 7” tech giants, up just 3.5% this year.
Galetti reaffirmed Amazon’s commitment to expanding AI and cloud infrastructure, calling AI “the most transformative technology since the Internet.” The company is expected to invest nearly $118 billion in capital expenditures this year, with much of it directed toward AI development and data centers.
The announcement also drew political attention. U.S. Senator Bernie Sanders called on Amazon founder Jeff Bezos to address the broader employment impact of automation, citing reports suggesting that up to 500,000 warehouse jobs could eventually be replaced by robots. Two U.S. senators have also questioned why Amazon remains the nation’s largest employer of H-1B visa holders while continuing to eliminate domestic positions.
Amazon is set to release its third-quarter earnings report on Thursday, which investors expect will shed more light on the financial impact of the restructuring.