Amazon announced it will lay off approximately 14,000 corporate employees, marking the largest corporate workforce reduction in the company’s history. The move is part of a broader effort to streamline operations and redirect resources toward generative artificial intelligence and other strategic priorities.
In a company-wide communication, Beth Galetti, Senior Vice President of People Experience and Technology, described the cuts as necessary to make Amazon “leaner and less bureaucratic,” enabling the tech giant to move faster in a highly competitive AI landscape.
“This generation of AI is the most transformative technology we’ve seen since the Internet,” Galetti stated. “To innovate quickly, we need fewer layers and more ownership across the organization.”
A Strategic Shift, Not a Contraction
The layoffs affect about 4% of Amazon’s corporate and tech workforce, which totals roughly 350,000 employees. The company emphasized that it will continue hiring in “key strategic areas,” even as it trims roles in other segments.
Affected units include cloud computing, advertising, grocery, video games, human resources, and devices. Impacted employees will have 90 days to seek new roles within Amazon. Those who do not remain will receive severance, outplacement services, and temporary health benefits.
AI Investment as a Driving Force
The job cuts come amid massive investments in AI. Amazon plans to spend approximately $118 billion this year on AI development and cloud infrastructure. Since January, the company has committed nearly $10 billion each to data center projects in Mississippi, Indiana, Ohio, and North Carolina.
CEO Andy Jassy signaled this shift in June, telling staff that generative AI would eventually reduce the need for specific corporate roles while creating demand for others. Under his leadership, Amazon has accelerated its focus on AI, with more than 1,000 generative AI services and applications currently in development.
Broader Industry Trend
Amazon is not alone in tying workforce changes to AI adoption. Companies like Meta, Microsoft, and Google have also reduced staff this year while emphasizing AI as a core growth driver. According to industry analysts, the trend reflects a move from human capital toward technological infrastructure in the tech sector.
Neil Saunders, Managing Director of GlobalData, described the layoffs as “a deep cleaning of Amazon’s corporate workforce.” He noted that the company is “operating from a position of strength,” but must manage costs carefully given its heavy investments in AI and logistics.
Context and Outlook
The latest cuts follow earlier layoffs of 27,000 employees between 2022 and 2023. Like many tech firms, Amazon expanded rapidly during the COVID-19 pandemic, only to later recalibrate as market conditions shifted.
Despite the corporate reductions, Amazon continues to hire in operational roles. Earlier this month, the company announced plans to hire 250,000 seasonal workers for the holiday season.
Amazon is scheduled to report third-quarter earnings, offering further insight into its financial health and strategic direction.
