Amazon Announces Major Job Cuts Amid AI Transformation

Wed Oct 29 2025 21:44:03 GMT+0200 (Eastern European Standard Time)

In a strategic shift towards artificial intelligence, Amazon has confirmed plans to eliminate approximately 14,000 corporate positions in a bid to streamline operations.

Amazon has confirmed it will lay off around 14,000 employees in its corporate division to better leverage artificial intelligence for future growth. The company, which experienced a surge in hiring during the pandemic, is restructuring to stay agile and competitive in an evolving tech landscape. Senior Vice President Beth Galetti communicated that the layoffs are aimed at reorganizing the workforce for more efficiency and investment in key areas. Despite overallGrowth, Amazon's recent financial performance has raised questions regarding the sustainability of its AI initiatives.

Amazon has confirmed it plans to cut thousands of jobs, stating a need to be 'organised more leanly' to capitalize on opportunities presented by artificial intelligence (AI).

The e-commerce giant announced on Tuesday it would reduce its global corporate workforce by 'approximately 14,000 roles.'

Initial estimates had suggested a potential layoff of up to 30,000 workers.

Beth Galetti, Senior Vice President at Amazon, explained in a note to staff that the reduction would ultimately make the company 'even stronger' by reallocating resources to priorities that matter most to customers.

She acknowledged skepticism surrounding the layoffs, particularly as the company recently exceeded profit expectations with a strong increase in second-quarter sales. However, Galetti emphasized that the necessity for cuts stemmed from the transformative nature of AI technology, which is fostering rapid innovation.

'We are convinced that we need to be organised more efficiently, with fewer layers, to respond quickly to our customers and business needs,' she added.

The note also mentioned support for affected employees, including efforts to help them find new positions within the company or providing transition assistance such as severance pay.

Amazon employs over 1.5 million individuals globally, with around 350,000 in corporate roles encompassing executives and management.

In response to the increased demand during the COVID-19 pandemic, Amazon expanded its workforce significantly, but CEO Andy Jassy has since been focused on reducing expenses while investing heavily in AI capabilities to enhance operational efficiency.

Jassy predicted in June that the rise of AI tools could lead to job reductions as automated systems take over routine tasks.

Despite continued demand, concerns linger among analysts regarding the sustainability of Amazon's AI investments, especially as its cloud services growth lags behind rivals like Microsoft and Google.

Following this announcement, Amazon is set to release its latest quarterly results soon, shedding light on its operational performance amid these significant changes in employment strategy.