Amazon to Cut 14,000 Corporate Jobs Amid AI Integration

Amazon has announced plans to reduce its corporate workforce by approximately 14,000 positions, marking a significant shift as the company accelerates its adoption of artificial intelligence (AI).

 

This decision reflects Amazon's strategic move to streamline operations and enhance efficiency through AI-driven automation.

 

Departments impacted by these layoffs include Amazon Web Services (AWS), Prime Video, devices, advertising, human resources, and operations.

 

Employees affected by the cuts have been notified via personal emails, informing them that their roles are being eliminated.

 

They are offered a 90-day period to seek new positions within the company, with recruitment teams prioritizing internal candidates.

 

For those unable to secure alternative roles, Amazon is providing severance packages and transitional support.

 

Beth Galetti, Senior Vice President of People Experience and Technology, emphasized the transformative impact of AI, stating, "This generation of AI is the most transformative technology we've seen since the Internet, and it's enabling companies to innovate much faster than ever before."

 

Amazon's investment in AI is substantial, with approximately $118 billion allocated this year towards building AI and cloud infrastructure.

 

CEO Andy Jassy has indicated that increased use of AI tools and agents would lead to more corporate job cuts, particularly through automating routine tasks.

 

These layoffs offer an early look at the broad effects that AI could have on workforces.

 

As Amazon continues to integrate AI into its operations, further workforce reductions are anticipated into 2026.

 

Despite these changes, the company plans to continue hiring in certain areas, focusing on roles that align with its AI-driven initiatives.

 

Amazon's stock has risen about 3.5% this year, making it the worst performer among the "Magnificent 7" group of megacap tech stocks.

 

As the company navigates this transition, it remains committed to supporting affected employees while positioning itself at the forefront of AI innovation.