Amazon Cuts 14,000 Corporate Jobs, Cites AI as Catalyst for Leaner Structure

Amazon to cut 14,000 corporate jobs | TechCrunch

Amazon said on Tuesday that it plans to reduce its corporate workforce by 14,000 jobs as it seeks to reduce bureaucracy, remove layers and invest more in its AI strategy. This marks the e-commerce giant's second-largest job cuts since it slashed 22,000 jobs in 2022. Amazon had nearly 1.2 million employees as of October 31, 2024, of which more than 360,000 were in its corporate division, in administrative, sales and executive roles. In a memo shared with employees, Beth Galetti, senior vice president of people experience and technology at Amazon, wrote that the move is aimed at making the company "even stronger" by shifting resources to invest in its "biggest bets." Galetti acknowledged that the decision would be questioned in light of the company's good performance, but argued that the layoffs are necessary because the "world is changing quickly." "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 (in existing market segments and altogether new ones). We're convicted [sic] that we need to be organized more leanly [sic], with fewer layers and more ownership, to move as quickly as possible for our customers and business," she wrote. The layoffs come at a time when Amazon is investing heavily in tech infrastructure to build more compute capacity for offering AI services. In June, Amazon CEO Andy Jassy wrote in a memo to staff that the company would need fewer employees as it continues to roll out more AI agents. "As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs. It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company." That focus is clearly visible if you consider the company's expenditure on tech infrastructure. Amazon said it had spent $55.6 billion in the first half of its current financial year primarily on tech infrastructure to support the growth of its cloud services business, Amazon Web Services, according to its quarterly report. The company's revenue increased 13% to $167.7 billion in the second quarter compared to a year earlier. AWS accounted for 18% of total net sales. Reuters reported on Monday that the company was planning to slash up to 30,000 jobs across human resources, devices and services, operations, and other departments. The company has made smaller job cuts across different divisions. In January, Amazon reduced a small number of positions in its Communications and Sustainability departments. Amazon said it is offering most affected employees 90 days to look for a new role internally, and its recruiters would prioritize internal candidates for new roles within the company. It will also offer severance pay, outplacement services, health insurance benefits, and more to those who can't move internally. Galetti wrote that in 2026, the company would continue to remove layers and "realize efficiency gains" while hiring in key areas.

Amazon cuts 14,000 jobs, blames AI

Amazon is planning to axe around 14,000 corporate jobs. The mass layoffs were expected as part of the company's cost-cutting drive, but are smaller than the 30,000 job losses previous reports had indicated. Beth Galetti, a senior executive at the e-commerce giant, broke the news to employees in a message on Tuesday. "The reductions we're sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we're investing in our biggest bets and what matters most to our customers' current and future needs," Galetti said. Galetti did not give an indication of what roles are being cut or where they are located. Most employees will have 90 days to look for a new job internally, she said. "Some may ask why we're reducing roles when the company is performing well," Galetti wrote. "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 (in existing market segments and altogether new ones). We're convicted that we need to be organized more leanly." Galetti said Amazon expects "to continue hiring in key strategic areas" in 2026, but will also keep searching for areas to "realize efficiency gains," suggesting more job cuts may be on the horizon. Amazon's last major round of job cuts was at the end of 2022 and into 2023, when 27,000 workers were laid off. Galetti's memo referenced a message from CEO Andy Jassy sent to employees in June. In it, the executive evangelizes generative AI as both the source of Amazon's sought efficiency gains -- read job cuts -- and its strategic direction for products and services. The company has made it clear it hopes to tap automation, robotics, and AI as means of slashing labor costs and ultimately replacing thousands more human workers.

Amazon axes 14,000 desk jobs in AI-powered slimming plan

Layoffs are part of an efficiency drive, not a sign of struggle, says HR exec Amazon is cutting 14,000 corporate jobs, blaming the accelerating impact of artificial intelligence for changing how the company operates - and how many people it needs. In a public statement, Beth Galetti, Amazon's senior vice president of People Experience and Technology, said the global layoffs were part of a plan to make the corporation "organized more leanly" and able to move faster as AI transforms every part of its business. "This generation of AI is the most transformative technology we've seen since the internet," she wrote, claiming that automation and faster decision-making would allow Amazon to "innovate much faster than ever before." The cuts, announced on Tuesday, will affect staff across global corporate teams, including HR, devices, communications, and some AWS support roles, according to Reuters, which initially reported that Amazon planned to ax as many as 30,000 staffers. Managers began notifying affected employees this week following internal briefings on how to handle the process. Amazon said it is "working hard to support everyone whose role is impacted," offering most employees 90 days to find a new internal position and giving priority to internal candidates in recruitment. Those unable or unwilling to stay on will receive severance pay, outplacement support, health insurance coverage, and other benefits, according to Amazon. Amazon has over 350,000 corporate employees, according to a 2024 filing with the US Equal Employment Opportunity Commission [PDF], meaning the reductions represent about 5 percent of its white-collar workforce. While the company insists its businesses are performing well, the move underlines how even the most profitable tech giants are reorganizing for the AI era. The reduction marks one of Amazon's largest culls since 2023, when it axed around 27,000 roles over the space of three months. In June, CEO Andy Jassy foreshadowed the move, telling employees that efficiency gains from artificial intelligence would eventually allow Amazon to operate with a smaller human workforce. Galetti's latest note puts that prediction into motion. The announcement also comes amid extraordinary investment elsewhere. Recent figures revealed that Amazon's annual capital expenditure for datacenters has now topped $100 billion - roughly comparable to Costa Rica's entire GDP and greater than that of Luxembourg or Lithuania. That spending spree highlights the shifting economics of Big Tech. While investments in AI infrastructure soar, headcount in corporate and administrative functions is dropping. Amazon has increasingly leaned on internal AI systems to streamline logistics, automate HR processes, and assist with code generation - technology that may now be replacing some of the humans who helped build it. The timing isn't ideal either. The layoffs arrive just a week after a major AWS outage in the US-East-1 region that took swathes of the internet offline. While the two events aren't directly related, the juxtaposition underscores the challenge of balancing efficiency drives with operational resilience. Amazon's keeping quiet on how much cash the cuts will save it, but the goal's plain enough: trim the fat, let the bots take over, and march toward the AI-powered future it's spending billions to build. For thousands of corporate staff, though, that leaner future will mean finding somewhere else to log in. ®

Amazon laying off about 14,000 corporate workers as it invests more in AI

In a blog post, the company wrote that the layoffs are being carried out to help make the company leaner and less bureaucratic, while it looks to invest in "our biggest bets" including generative artificial intelligence. "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 (in existing market segments and altogether new ones)," Beth Galetti, senior vice president of people experience and technology at Amazon, wrote. "We're convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and businesses." The layoffs are expected to ultimately be the largest corporate job cuts in Amazon's history, CNBC previously reported. Reuters reported the cuts could affect as many as 30,000 employees, citing sources familiar with the matter.

Amazon cuts its workforce by 14,000 in further embrace of AI

Amazon has announced an approximately 14,000 person reduction in its corporate workforce. The news follows an earlier report from Reuters that up to 30,000 people could be let go. However, the exact number of layoffs is unclear, with the 14,000 figure being cushioned by planned hirings. Engadget has reached out to Amazon for exact layoff numbers, but Bloomberg reports that impacted jobs are within teams such as video games, logistics, payments and cloud-computing. The impetus for this reduction is, of course, AI. In the announcement, Beth Galetti, Amazon's senior vice president of people experience and technology, states that Amazon is "performing well" but "that the world is changing quickly." Galetti continues: "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 (in existing market segments and altogether new ones). We're convicted that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business." Amazon has executed a series of smaller scale layoffs regularly over the past few years. These layoffs have hit a range of departments, including Prime Video, Amazon Web Services and newly unionized warehouse workers.

Amazon confirms massive job losses in corporate division

Beth Galetti, a senior vice president at Amazon, wrote in a note to staff, external that the move would make the company "even stronger" by shifting resources "to ensure we're investing in our biggest bets and what matters most to our customers' current and future needs". She acknowledged that some would question the move given the company was performing well. At the end of July, Amazon reported second quarter results which beat Wall Street expectations on several counts, including a 13% year over year increase in sales to $167.7bn (£125bn). But Ms Galetti said the cuts were needed because AI was "the most transformative technology we've seen since the Internet" and was "enabling companies to innovate much faster than ever before." "We're convicted 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 note, shared with Amazon employees earlier on Tuesday, said the company was "working hard to support everyone whose role is impacted" - including by helping those affected find new roles within Amazon. Those who cannot will receive "transition support" including severance pay, it said. The BBC has asked if it will affect employees in the UK. The company has more than 1.5 million employees across its warehouses and offices worldwide. This includes around 350,000 corporate workers, which include those in executive, managerial and sales roles, according to figures, external that Amazon submitted to the US government last year. Like many technology firms, Amazon hired aggressively during the Covid-19 pandemic to meet the surge in demand for online deliveries and digital services. Amazon boss Andy Jassy has since focused on reducing spending as the company invests heavily in AI tools to boost efficiency. Mr Jassy said in June that the increase in AI tools will likely lead to job cuts as machines take over routine tasks. "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 then. The company has carried out several rounds of cuts to its corporate division in recent years. It laid off around 27,000 workers over several months in 2022, as rivals similarly looked to reverse hiring increases made during the pandemic. But analysts said its more subdued profit guidance for the forthcoming quarter had left some sceptical of the value of its enormous AI investments and whether they would pay off. Slower growth for its cloud business, Amazon Web Services (AWS), compared to rivals Microsoft and Google, also sparked concern among some investors. Amazon will report its latest quarterly results on Thursday for the period ending 30 September.

Amazon Braces for Major Cuts to Its White Collar Work Force

Amazon is bracing for major job cuts among its corporate employees starting on Tuesday, as it spends aggressively on artificial intelligence development, according to two people familiar with the cuts. Another round of corporate cuts is expected in January, after the holiday shopping season, the people said. One of the people said the company was looking to cut billions of dollars in its operating expenses, and gave the leaders of the groups facing cuts, including human resources, targets to trim 10 to 15 percent of their costs related to head count. More senior roles, like directors, are expected to be harder hit than in earlier rounds of layoffs, the people said. Reuters, which reported the layoffs earlier on Monday, said the cuts could total about 30,000 jobs, or almost 10 percent of the company's corporate ranks. Amazon declined to comment. The company had $18 billion in profit in the latest quarter, and has increased spending on data centers that develop leading artificial intelligence systems. Capital expenses, which include data centers, are expected to top $120 billion this year, up almost 50 percent from last year. In June, Andy Jassy, Amazon's chief executive, told employees that efficiency gains from using A.I. will shrink the company's corporate work force over the next few years. "We will need fewer people doing some of the jobs that are being done today," he wrote. While that might create new opportunities, he predicted that the overall corporate work force would be smaller as a result. Amazon has also looked to rein in the growth of its warehouse and other blue-collar workers, who make up most of its more than 1.5 million employees. The New York Times reported last week that the company had plans to use automation to avoid hiring more than 600,000 warehouse employees in a decade even as it expects to sell twice as many items over that period. Amazon last saw widespread layoffs almost three years ago, in a series of cuts over several months that trimmed 27,000 positions. The company's work force had ballooned during the early pandemic, topping 1.6 million. Though the business has since grown substantially, it had 1.5 million workers as of the end of June. Amazon's competitors have been turning to layoffs as well. Microsoft cut about 15,000 roles in the early summer. Target last week said it would trim roughly 1,800 corporate jobs, and Meta laid off 600 people.

Amazon confirms 14,000 corporate job cuts, says push for 'efficiency gains' will continue into 2026

Amazon confirmed Tuesday that it is cutting about 14,000 corporate jobs, citing a need to reduce bureaucracy and become more efficient in the new era of artificial intelligence. In a message to employees, posted on the company's website, Amazon human resources chief Beth Galetti signaled that additional cutbacks are expected to take place into 2026, while indicating that the company will also continue to hire in key strategic areas. Reuters reported Monday that the number of layoffs could ultimately total as many as 30,000 people, which is still a possibility as the cutbacks continue into next year. At that scale, the overall number of job cuts could eventually be the largest in Amazon's history, exceeding the 27,000 positions that the company eliminated in 2023 across multiple rounds of layoffs. "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," wrote Galetti, senior vice president of People Experience and Technology. Amazon's leadership team believes the company needs "to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business," she explained. Galetti wrote that the company is "shifting resources to ensure we're investing in our biggest bets and what matters most to our customers' current and future needs" -- indicating that layoff decisions are being made based whether different teams and roles align with the company's direction. Amazon's corporate workforce numbered around 350,000 people in early 2023, the last time the company provided a public number. At that scale, the initial reduction of 14,000 represents about 4% of Amazon's corporate workforce. However, the number is a much smaller fraction of its overall workforce of 1.55 million people, which includes workers in its warehouses. Cuts are expected across multiple regions and countries, but they are likely to hit especially hard in the Seattle region, home to the company's first headquarters and its largest corporate workforce. The tech hub has already felt the impact of major layoffs by Microsoft and others in recent months. The cuts come two days before Amazon's third quarter earnings report. Amazon and other cloud giants have been pouring billions into capital expenses to boost AI capacity. Cutting jobs is one way of showing operating-expense discipline to Wall Street. In a memo to employees in June, Amazon CEO Andy Jassy wrote that he expected Amazon's total corporate workforce to get smaller over time as a result of efficiency gains from AI. Jassy took over as Amazon CEO from founder Jeff Bezos in mid-2021. In recent years he has been pushing to reduce management layers and eliminate bureaucracy inside the company, saying he wants Amazon to operate like the "world's largest startup." Bloomberg News reported this week that Jassy has told colleagues that parts of the company remain "unwieldy" despite the 2023 layoffs and other efforts to streamline operations. As part of its report, Reuters cited sources saying the magnitude of the cuts is also a result of Amazon's strict return-to-office policy failing to cause enough employees to quit voluntarily. Amazon brought workers back five days a week earlier this year. Impacted teams and people will be notified of the layoffs today, Galetti wrote. Amazon is offering most impacted employees 90 days to find a new role internally, though the timing may vary based on local laws, according to the message. Those who do not find a new position at Amazon or choose to leave will be offered severance pay, outplacement services, health insurance benefits, and other forms of support.

Amazon set to make up to 14,000 humans redundant as it 'innovates much faster' with AI

Amazon has confirmed it is cutting 14,000 corporate jobs this week in an effort to be more "nimble" and try to "operate like the world's largest startup." These cuts are believed to be focused on Amazon's corporate roles rather than warehouse or delivery staff and take hold as the company looks to streamline its operation thanks to AI. Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, confirmed the changes in a memo shared with Amazon staff today, October 28. "Some may ask why we're reducing roles when the company is performing well," she wrote. "What we need to remember is that the world is changing quickly. 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 (in existing market segments and altogether new ones). "We're convicted that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business." Amazon has always maintained a reputation for efficiency, and this latest round of cuts comes after CEO Andy Jassy decided the company had an excess of bureaucracy. He reportedly put in place an anonymous tip line that resulted in over 1,500 responses identifying inefficiencies in the company. Galetti doesn't go into specifics on which divisions are affected, but it's believed that corporate areas, including human resources, devices and services and Amazon Web Services, will all see reductions. Amazon hired aggressively during the pandemic and may be looking to readjust the balance, but it's also hard to ignore the impact of AI in this decision. And Amazon isn't the only tech giant taking this approach in 2025. Microsoft and Google have both cut thousands of human staff this year while accelerating AI automation. Microsoft is being particularly aggressive here. In April, CEO Satya Nadella told CNBC that as much as 30% of the company's code is AI-generated, and Redmond followed this up with a study revealing the 40 jobs most likely to be impacted by AI. Andy Jassy hasn't been quite as blunt as that, but the successor to Jeff Bezos said in June that AI will "change the way our work is done". He added: "We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs." Now it appears he's putting his prediction into practice, just a week after the world was reminded just how much it relies on the company's system. Last Monday (October 20), huge swathes of the internet were knocked offline following an AWS outage. This was caused by services -- everything from Snapchat to Venmo -- being unable to connect to a database system due to "a latent defect within the service's automated DNS [domain name system] management system". Several false fixes were implemented before normal service was resumed. Amazon's last major round of job cuts came at the end of 2022 and the start of 2023 when it laid off 27,000 workers. While these cuts affect corporate staff, the company has made it clear that it's looking into robotics and automation in order to make its warehouse less reliant on human labor. The company says it will give affected employees 90 days to find a new role, and those unable to find a replacement will be given severance pay, outplacement services, and health insurance benefits.

Amazon reportedly set to lay off up to 30,000 corporate employees in massive workforce cut

Amazon is preparing to lay off as many as 30,000 corporate employees in a sweeping workforce reduction intended to reduce expenses and compensate for over-hiring during the pandemic, according to a report from Reuters on Monday. GeekWire has contacted Amazon for comment. Layoff notifications will start going out via email on Tuesday, according to Reuters, which cited people familiar with the matter. One employee at Amazon told GeekWire the workforce is on "pins and needles" in anticipation of cuts. Amazon's corporate workforce numbered around 350,000 in early 2023. It has not provided an updated number since then. The company's last significant layoff occurred in 2023 when it cut 27,000 corporate workers in multiple stages. Since then the company has made a series of smaller layoffs across different business units. Fortune reported this month that Amazon planned to cut up to 15% of its human resources staff as part of a wider layoff. Amazon has taken a cautious hiring approach with its corporate workforce, following years of huge headcount growth. The company's corporate headcount tripled between 2017 and 2022, according to The Information. The reported cuts come as Amazon is investing heavily in artificial intelligence. The company said earlier this year it expects to increase capital expenditures to more than $100 billion in 2025, up from $83 billion in 2024, with a majority going toward building out capacity for AI in AWS. Amazon CEO Andy Jassy also hinted at potential workforce impact from generative AI earlier this year in a memo to employees that was shared publicly. "We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs," he wrote. "It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company." Amazon reported 1.54 million total employees as of June 30 -- up 3% year-over-year. The majority of the company's workforce is made up of warehouse workers. Amazon employs roughly 50,000 corporate and tech workers in buildings across its Seattle headquarters, with another 12,000 in Bellevue. The company reports its third quarter earnings on Thursday afternoon. Fellow Seattle-area tech giant Microsoft has laid off more than 15,000 people since May as it too invests in AI and data center capacity. Microsoft has cut more than 3,200 roles in Washington this year. Last week, The New York Times cited internal Amazon documents and interviews to report that the company plans to automate as much as 75% of its warehouse operations by 2033. According to the report, the robotics team expects automation to "flatten Amazon's hiring curve over the next 10 years," allowing it to avoid hiring more than 600,000 workers even as sales continue to grow.

Amazon will cut 14,000 corporate roles, nods to AI-driven changes

Why it matters: Big companies are starting to cut back headquarters positions in an uncertain economy, where AI is increasingly capable of supplanting many roles. What they're saying: "What we need to remember is that the world is changing quickly. 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 (in existing market segments and altogether new ones)," Amazon senior vice president Beth Galetti wrote in a blog post. * "We're convicted that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business." * Galetti also noted the company would continue hiring in some areas in 2026, while making cuts in others. Editor's note: This is a breaking news story. Check back for updates.

Amazon confirms plan to cut 14,000 corporate jobs in AI push

Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images Amazon said Tuesday it will reduce its corporate workforce by about 14,000 roles, framing the decision as part of a broader shift toward AI and a leaner structure. Beth Galetti, senior vice president of people experience and technology, told employees the cuts are aimed at making the organization faster and more efficient. She wrote in a memo: "The reductions we're sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we're investing in our biggest bets and what matters most to our customers' current and future needs. "While this will include reducing in some areas and hiring in others, it will mean an overall reduction in our corporate workforce of approximately 14,000 roles." Galetti said affected employees will be supported through internal transfers and transition services like "severance pay, outplacement services, health insurance benefits." She pointed to AI as reshaping how Amazon operates, calling it "the most transformative technology we've seen since the Internet, and it's enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones). We're convicted that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business." Chief Executive Andy Jassy signaled earlier this year that the workforce would shrink as more tasks were automated. In June, he said advances in AI would "reduce" the company's corporate headcount in the years ahead. Jassy also made layoffs in late 2022 and early 2023 that cut about 27,000 corporate jobs. Galetti also referenced Jassy's push for cultural change, citing his earlier note to staff about Amazon operating "like the world's largest startup." She added that the latest cuts are part of that effort to increase ownership and reduce layers. Amazon employed about 1.55 million full-time and part-time workers worldwide as of June 30, including warehouse staff, drivers and corporate employees. Reuters initially reported the job losses could ultimately affect as many as 30,000 roles. The company is due to report earnings for the quarter ending Sept. 30 on Thursday.

Amazon to lay off 14,000 corporate employees

Amazon said Tuesday that it plans to cut 14,000 corporate jobs, its biggest round of layoffs in years, as it invests more in artificial intelligence. In Amazon's announcement, top human resources executive Beth Galetti cited AI, which she said the "most transformative technology we've seen since the internet." She added that AI was "enabling companies to innovate much faster than ever before." "We're convicted that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business," Galetti continued. In June, Amazon CEO Andy Jassy sent employees at the company an email with the subject line "Some thoughts on Generative AI." In it, Jassy signaled that Amazon's workforce would likely shrink in the future. "We will need fewer people doing some of the jobs that are being done today, and more people doing and more people doing other types of jobs," he wrote. Jassy continued, "It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company." Amazon had 1.55 million employees worldwide at the end of the second quarter, which ended on June 30, according to a filing. About 350,000 of those work in corporate offices, Reuters reported. The tech giant said it would give employees whose roles are eliminated Tuesday "90 days to look for a new role internally," with recruiters prioritizing internal candidates "to help as many people as possible find new roles within Amazon." Amazon has in recent years also ordered corporate employees back into the office and asked them to move closer to the physical office locations where they are based. Workers were told in June to relocate to Amazon hubs such as Seattle and the Virginia area, Bloomberg News reported. Those locations are where two of Amazon's regional headquarters are located. Amazon is set to announce its third quarter earnings on Thursday. Wall Street analysts expect the company, which currently has a market value of more than $2.4 trillion, to report revenue of more than $170 billion. Tuesday's cuts may only be the beginning. Galetti said Amazon expects "to continue hiring in key strategic areas while also finding additional places we can remove layers, increase ownership, and realize efficiency gains."

Amazon cutting 14,000 jobs as the retailing giant embraces AI

Amazon on Tuesday said it is cutting 14,000 corporate jobs as the retailing giant relies more on artificial intelligence and moves to lower its wage bill. Earlier this year, CEO Andy Jassy said Amazon's investment in AI tools would allow the company to reduce its human workforce as the business becomes more efficient. Beth Galetti, senior vice president of people experience and technology, on Tuesday said in a statement that the job cuts would allow Amazon "to operate like the world's largest startup." "What we need to remember is that the world is changing quickly," she added. "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 (in existing market segments and altogether new ones)."

Amazon could cut up to 30,000 corporate roles - Reuters

After its CEO said in June that AI would lead to corporate jobs cuts, Reuters is reporting that Amazon will begin today to lay off up to 30,000 people in corporate roles. Today will see the beginning of a programme to cut up to 30,000 corporate jobs worldwide at Amazon, according to reporting from Reuters, who say the company is aiming to cut costs and compensate for overhiring during the Covid-19 pandemic. While the move would represent a relatively small percentage of Amazon's more than 1.5m total employees, it would represent some 10pc of its corporate employees and be the largest cut since January and March 2023 when Amazon announced cuts of some 27,000 positions. Reuters is citing three sources familiar with the situation, who say that managers of the relevant teams were offered training to prepare for how they will communicate with staff once the cuts begin today, but Amazon has declined to comment on the story. Jobs effected could include human resources, devices and services - including Amazon Web Services (AWS) - according to the report. Amazon has been cutting smaller numbers of employees in recent years. In 2024 when AWS announced cuts of several hundred, a company spokesperson told SiliconRepublic.com that the company identified a few targeted areas that "we need to streamline" to continue focusing on "key strategic areas". But in June of this year, Amazon CEO Andy Jassy said the company expected artificial intelligence to reduce its total corporate workforce, and if Reuters' reporting is correct, this could be the outcome of that comment. Somewhat ironically, the reporting comes just a week after a major AWS outage (October 24) was blamed on faulty automation, and required manual operator intervention. The outage affected millions of users around the world as several dozen websites, from Perplexity to Canva, Signal to Atlassian, went down. The outage, AWS explained, was triggered by a latent defect in its automated DNS management system that caused endpoint resolution failures for DynamoDB which maintains hundreds of thousands of DNS records. The error required manual operator intervention to correct, AWS said in a lengthy statement. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Amazon Just Announced 14,000 Layoffs. CEO Andy Jassy Meant It When He Said AI Would Replace Jobs

Earlier this year, Amazon CEO Andy Jassy told investors that artificial intelligence would "change the way our work is done." It turns out, that wasn't just a CEO being optimistic about how technology was going to change everything-for the better, of course. Now it looks like he meant exactly what he said. This morning, Amazon announced it was cutting 14,000 corporate jobs, roughly 5 percent of its white-collar workforce. Reuters previously reported the total number could be closer to 30,000. Layoffs aren't uncommon-especially for tech companies. Layoffs.fyi, a site that monitors the tech industry, says that companies have already let go of more than 90,000 employees this year. Typically, they're a thing that happens after a period of overhiring. As markets slow, executives make "difficult decisions." To some extent, this is a continuation of that trend. Amazon went on a hiring spree during the pandemic in order to keep up with the surging demand that came along with hundreds of millions of people all staying home and ordering everything online. But there's more to this round of layoffs than just the usual response to changing market conditions. As I mentioned before, Jassy has been signaling this was coming for a while. In June, he told CNBC that generative AI would mean that the types of roles the company needed would shift. "As we roll out more Generative AI and agents, it should change the way our work is done," Jassy said. "We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs." At the time, it just seemed like the kind of thing a CEO says to show they're paying attention to the latest technology. But inside the company, it became essentially a mandate. Amazon's internal teams have been testing AI tools for HR workflows, code generation, procurement, and even customer-service decision trees. Many of the functions once performed by analysts, coordinators, or middle managers can now be automated -- or at least reduced to oversight. Jassy's logic is straightforward: if AI can do a job faster or better, you need fewer people doing those jobs. Multiply that across a corporate organization of hundreds of thousands, and you start to understand the scale and why this is so appealing to a company like Amazon. It's also a cultural statement. Amazon has long preached "Day 1" thinking -- a mantra about staying nimble and avoiding bureaucracy. Cutting tens of thousands of roles signals that the company is willing to tear down its own bureaucracy to stay true to that ideal. But there's a human cost. Thirty thousand corporate employees aren't just numbers on a spreadsheet. Replacing them with code may make financial sense, but it risks something harder to measure: trust. The other thing that makes this seem different from past layoffs is who is affected. Amazon has already optimized its warehouses. It isn't cutting the workers who handle packages -- in fact, the company plans to hire 250,000 seasonal employees to ramp up for the holidays. The target here is those employees in the middle -- the analysts and managers who keep corporate operations running. Generative AI can do a lot of the things Amazon pays those employees to do. In fact, it's pretty good at things like analyzing data, creating reports, summarizing findings, and even generating performance reviews. Amazon isn't alone. Across the tech industry, executives are pitching AI as both a way to reduce the cost of paying humans for their work, and for making the ones you do pay much more efficient. Sure, they use different words, to some extent. The pitch they sell you up front is that AI will make people far more productive and save them time on routine tasks. Of course, that productivity and time add up, and eventually you need fewer people in those roles. Amazon's scale also means that this decision has a huge impact, even beyond just the number of people affected. Laying off thousands of employees, and making up for their work through automation and generative AI doesn't just set a precedent -- it normalizes it. The risk, of course, is that efficiency becomes the only thing that matters. If you're looking at your employees as costs to be reduced, there's a real risk that even those who remain will be a little less productive as they look over their shoulder at the AI coming for their job. Not only that, but when efficiency drives every decision, empathy tends to be the first casualty. Still, Jassy isn't wrong about where things are headed. AI will make companies more efficient. It will reshape the corporate workforce. And the leaders who understand that early will have a head start. The question isn't whether automation will replace jobs -- it already is. The question is what kind of company you become when it does. Like this column? Sign up to subscribe to email alerts and you'll never miss a post. The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.

Amazon layoffs 2025: Why 14,000 jobs are being cut, which Amazon divisions are most affected, and how Amazon stock is reacting

Amazon layoffs 2025 have sent shockwaves across the corporate world. The tech giant confirmed it will cut 14,000 corporate jobs this year, equal to about 4% of its 350,000 white-collar workforce, as it prepares for a full-scale transition into the artificial intelligence (AI) era. The company said the move is designed to make Amazon leaner and faster while redirecting resources toward AI, automation, and cloud innovation. Executives described the layoffs as a strategic restructuring -- not a sign of slowdown, but a pivot to strengthen Amazon's competitiveness in the next wave of digital transformation. The decision comes as Amazon faces rising operating costs and slower growth in some retail segments after years of pandemic-era overexpansion. CEO Andy Jassy and Senior VP Beth Galetti said AI is driving the biggest transformation in Amazon's history, calling it "the most powerful shift since the Internet." The company said it would continue hiring for AI, cloud computing, and robotics roles, while offering priority rehiring for affected employees in these emerging divisions. Sources told Reuters that the restructuring mainly targets corporate and management roles across HR, retail, AWS, and device units like Alexa and Fire TV, which are being consolidated to cut overhead. Most warehouse and delivery workers remain unaffected. Analysts say up to 30,000 positions could ultimately be impacted as Amazon automates more of its global operations through advanced AI systems. Despite the headline layoffs, investors responded positively. Amazon stock (NASDAQ: AMZN) rose to $226.97, up slightly on Tuesday, as traders viewed the cuts as a signal of cost discipline and efficiency ahead of a major AI expansion. Wolfe Research maintained its $270 price target, citing margin improvement and long-term growth potential driven by Amazon's AI roadmap. The company's market cap now sits around $2.35 trillion, cementing its place among the top five U.S. corporations by value. Analysts say this marks the first large-scale layoff wave of the AI era. Unlike previous tech job cuts tied to financial strain, Amazon's move reflects a deeper strategic shift -- reducing middle management and repetitive corporate roles while investing billions into AI data centers, generative AI tools, and cloud infrastructure. Economists note that this transition could set a precedent for other tech majors to streamline workforces as AI accelerates decision-making and automation. For Amazon, the goal is to reallocate resources toward high-growth sectors like AWS, advertising, and AI-driven logistics. The company believes these changes will improve operating margins in 2026 and beyond. However, analysts warn that execution will be critical -- balancing AI efficiency with innovation and employee morale. Still, Amazon's leadership remains confident that these cuts will help it move faster, stay innovative, and dominate the next phase of AI-powered growth. Amazon's corporate layoffs affect roughly 4% of its corporate workforce, which totals around 350,000 employees. These cuts are not random. The company is preparing to integrate AI into many business processes, which can automate repetitive and operational tasks. Amazon describes this as part of a long-term strategy rather than a short-term cost-cutting exercise. The company emphasizes that this is not about eliminating talent but about redirecting it. The biggest blow comes to Amazon Web Services (AWS), Prime Video, and Twitch, with significant workforce reductions reported across these business units. According to company insiders, about 7,000 positions were cut from AWS alone, primarily in sales, marketing, and operations teams, as the company faces slowing cloud growth and tougher competition from Microsoft Azure and Google Cloud. Another 3,000 roles were slashed in Prime Video and Amazon Studios, as the company rebalances its entertainment spending after years of heavy investment in original content. The cuts include several senior creative executives and marketing professionals, signaling a broader pullback in Amazon's streaming push. In addition, Amazon's Twitch division is reportedly eliminating around 500 roles, continuing a trend of downsizing that began in 2023 after the platform's restructuring under new leadership. Sources also indicate layoffs in Amazon's Devices and Alexa unit, where nearly 2,000 employees have been affected as demand for smart home devices slows globally. The latest layoffs follow CEO Andy Jassy's cost discipline drive, part of the ongoing "Fit for Future" initiative aimed at trimming underperforming areas and boosting profitability. The move brings Amazon's total job cuts since 2023 to over 37,000, making it one of the largest corporate downsizing efforts in U.S. tech history. The Amazon divisions most affected by the recent layoffs include: These cuts are part of a broader effort to reduce bureaucracy, streamline operations, and integrate AI technology more deeply into the company's workflow. The layoffs impact around 10% of the corporate workforce, aiming to flatten management layers and enhance responsiveness while preparing for increased automation through AI adoption. Overall, almost all major corporate departments are experiencing significant job cuts as part of CEO Andy Jassy's efficiency campaign and AI-driven restructuring strategy. Amazon has stated that it will provide support for employees affected by the layoffs. The company is offering a 90-day window for laid-off staff to apply for new roles internally. Here's how Amazon is supporting employees: The aim is to minimize the impact on workers while ensuring that talent is retained in areas where the company needs it most. Regarding Amazon's stock performance following the layoffs announcement, shares rose about 1.5% to $227.53, reflecting investor optimism about the company's cost-cutting strategy and its focus on efficiency and AI investments. Analysts remain optimistic about Amazon's long-term growth prospects amid these restructuring efforts. The short-term impact of the layoffs announcement on Amazon's stock price was positive. Amazon shares rose about 1.3% on the day following the layoffs announcement, closing around $227.11 initially and reaching roughly $229 in early trading. This uptick reflected investor optimism that the layoffs were part of an efficiency and cost-cutting drive, as well as a strategic push for AI adoption to improve productivity and streamline operations. Despite this short-term gain, Amazon's year-to-date stock performance remains below the broader market gains, indicating mixed longer-term investor sentiment. After the announcement of the layoffs, Wolfe Research maintained their price target for Amazon stock at $270. There is no clear indication from the current search results of other analysts updating or raising price targets specifically in response to this announcement. Wolfe Research's maintained target suggests cautious optimism reflecting the company's strategic moves around AI and cost management. The integration of AI is the main reason for the layoffs. Amazon is investing heavily in generative AI technologies to make business operations more efficient and reduce manual workloads. Key points about Amazon's AI strategy: This shift is part of a broader tech trend where companies are using AI to reduce operational costs and improve productivity. While Amazon has not listed every role that will be cut, some trends are clear. The layoffs mainly affect corporate and administrative positions that can be automated or streamlined. Employees in these roles may experience: At the same time, Amazon continues to hire in critical growth areas like AI development, cloud computing, and new technology teams. This means there are still opportunities for employees who adapt and reskill. The layoffs are part of a larger transformation strategy for Amazon. By reducing unnecessary positions and focusing on AI, the company aims to: The move also sends a signal to the market that Amazon is serious about using technology to drive long-term growth. Analysts expect that these changes could strengthen the company's position in AI and cloud markets. Amazon's decision reflects a wider trend in the tech sector. Many companies are restructuring to focus on AI while reducing traditional corporate roles. Industry insights: This shows that AI is reshaping white-collar jobs, and workers need to adapt to stay relevant. Employees affected by layoffs or considering career shifts should: By adapting to these trends, employees can secure roles in high-demand areas and reduce the risk of future layoffs.

Amazon Confirms 14,000 Layoffs; Says 'AI' Innovation Reason For 'Reducing Roles'

'This generation of AI is the most transformative technology we've seen since the internet. It's enabling companies to innovate much faster than ever before,' says Amazon executive Beth Galetti concerning the layoff of 14,000 corporate employees. Amazon confirmed that it will lay off 14,000 corporate employees as part of major organizational changes across the tech giant, with employees learning Tuesday if they will be let go. "There will be communications from leaders to those teams and individuals today, but we also wanted to share the broader context about what's happening and why," said Beth Galetti, senior vice president of People Experience and Technology at Amazon, in a letter to employees Tuesday. "While this will include reducing in some areas and hiring in others, it will mean an overall reduction in our corporate workforce of approximately 14,000 roles," she said. Regarding why the $168 billion Seattle-based tech giant is "reducing roles" when the company is performing well, Galetti pointed to AI innovation. "This generation of AI is the most transformative technology we've seen since the internet," she said. "It's enabling companies to innovate much faster than ever before [in existing market segments and new ones]," said Galetti. [Related: Amazon's Outage Root Cause, $581M Loss Potential And 'Apology:' 5 AWS Outage Takeaways] "We're convinced that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business," she said. Amazon, which includes its AWS cloud business, said many employees over the last year have "put significant effort into that work of strengthening your organizations by reducing layers, increasing ownership, and helping reduce bureaucracy," Galetti said. Because of this effort, Amazon is seeing great results by being able to have teams move faster, she said. "The reductions we're sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers and shifting resources to ensure we're investing in our biggest bets," said Galetti. Looking ahead to 2026, Amazon said it expects to "continue hiring in key strategic areas." However, the company said it will continue to find "additional places [where] we can remove layers, increase ownership and realize efficiency gains," said Galetti. Galetti touted Amazon's innovation and vision while discussing the layoffs. "I don't know of any other company with the breadth of Amazon, the number of exciting bold bets we're making, and all the ways we can make customers' lives better and easier around the world," said Galetti. The tech giant said it is offering most employees 90 days to look for a new role internally. Amazon said its own recruiting teams will prioritize internal candidates to help as many people as possible find new roles within Amazon. "For our teammates who are unable to find a new role at Amazon or who choose not to look for one, we'll offer them transition support including severance pay, outplacement services, health insurance benefits and more," said Galetti. This month, Amazon reportedly laid off up to 15 percent of its staff in its human resources division with additional layoffs in other divisions. In a companywide letter to employees in June, Amazon CEO Andy Jassy said that the company expects to "reduce" its corporate workforce due to "efficiency gains" in artificial intelligence. "As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today and more people doing other types of jobs," said Jassy in his letter to employees. "It's hard to know exactly where this nets out over time, but in the next few years we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company," Amazon's CEO said. Jassy said the company plans to spend $100 billion in capital expenditures in 2025 in a move to expand its AI and cloud data centers.

When is the next Amazon layoffs? Company confirms 14,000 job cuts as AI reshapes operations. Here's job cuts timeline and support for affected employees, AI and workforce restructuring

When is the next Amazon layoffs? Amazon confirmed that 14,000 corporate jobs will be cut in 2025 to streamline operations for AI expansion. The company plans further restructuring as it prepares for automation-driven changes, while CEO Andy Jassy emphasizes a leaner workforce and faster innovation for future growth. When is the next Amazon layoffs? Amazon has confirmed that it will cut 14,000 corporate jobs in 2025 as part of a major restructuring plan linked to artificial intelligence integration. The company said these layoffs are aimed at improving operational efficiency while focusing on AI-driven innovation. CEO Andy Jassy emphasized that Amazon will continue hiring in specific technology areas even as it reduces overall staff numbers. This move marks another step in Amazon's broader strategy to adapt its workforce to automation, digital transformation, and long-term AI growth. Amazon has announced that it will cut 14,000 corporate jobs this year as part of a larger plan to restructure its workforce in preparation for the adoption of artificial intelligence technologies. The layoffs will affect corporate employees across departments as the company seeks to simplify its operations. Senior Vice President Beth Galetti shared the update in a memo to employees that was also posted on Amazon's public blog. She explained that the company will continue hiring in select strategic areas but also expects more reductions in the coming months. Galetti said, "We expect to continue hiring in key strategic areas while also finding additional places we can remove layers, increase ownership, and realize efficiency gains." Reuters first reported that the layoffs could reach as high as 30,000 positions before the restructuring is complete. Galetti stated that Amazon's restructuring aligns with CEO Andy Jassy's vision to make the company operate more efficiently, similar to a startup model. The focus is to ensure that Amazon remains flexible in an evolving technology landscape shaped by artificial intelligence. She added that AI is the most transformative technology since the internet, enabling companies to innovate faster than ever before. To respond to these shifts, Amazon aims to be more agile, with fewer organizational layers and more ownership at every level. According to a filing with the U.S. Equal Employment Opportunity Commission in 2024, Amazon had over 350,000 corporate employees. The 14,000 job cuts represent around 4% of its corporate workforce. The layoffs will begin Tuesday, with most impacted employees given 90 days to apply for internal roles. Those who are unable to find new positions within the company will receive severance packages and other benefits. Amazon emphasized that employees will have access to resources during the transition, including career support and extended benefits to assist them in finding new opportunities within or outside the company. In a previous blog post from June, CEO Andy Jassy said that generative AI will transform how work is done at Amazon. He mentioned that while some jobs will be reduced, new types of roles will emerge as AI tools expand across business areas. "As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs," Jassy wrote. He also noted that AI will not only change Amazon's internal processes but will impact industries worldwide. Billions of AI agents will be integrated into different sectors, changing how people work and live. This round of layoffs follows earlier cuts in 2023, when Amazon reduced its workforce by 27,000 employees. Those cuts affected departments such as human resources, Amazon Stores, and Amazon Web Services. At that time, Jassy cited global economic pressures and rising costs as the primary reasons for downsizing. Neil Saunders, managing director at GlobalData, said that Amazon's decision reflects broader market challenges. He explained that global markets are tightening while operational costs continue to rise. Saunders added that Amazon's shift toward technology-driven efficiency marks a move away from human labor toward technological infrastructure. The U.S. job market has shown signs of slowing, particularly in the technology sector. Many companies are introducing AI tools that reduce the need for certain human roles. Analysts have warned that generative AI may displace workers in repetitive or process-driven jobs. However, AI experts have pointed out that while automation will change job structures, it will also create new opportunities. They emphasize that AI adoption should be balanced with policies that help workers transition into emerging roles. 1. When is the next Amazon layoffs expected to happen? Amazon has begun its layoffs this week, with 14,000 corporate positions affected. Further reductions may occur later in 2025 as AI integration continues. 2. Why is Amazon reducing its workforce? Amazon is cutting jobs to streamline operations, increase efficiency, and prepare for the wider use of artificial intelligence across its global business operations.

Amazon layoff: Company to fire up to 30,000 corporate jobs in its biggest layoff since 2022 amid AI overhaul and bureaucracy crackdown

Amazon is preparing to lay off up to 30,000 corporate employees, aiming to streamline operations and address pandemic-era overhiring. This significant reduction, impacting departments like HR and devices, is part of CEO Andy Jassy's strategy to cut bureaucracy and leverage AI for automation. The exact number of affected roles may fluctuate as financial priorities evolve. Amazon is set to eliminate as many as 30,000 corporate positions, as part of a strategic move to streamline operations and address overhiring during the pandemic's peak demand. This significant reduction represents approximately 10 percent of Amazon's 350,000 corporate employees, though it constitutes a small fraction of the company's total workforce of 1.55 million. The layoffs are expected to affect various departments, including People Experience and Technology (HR), devices and services, and operations. Managers of impacted teams underwent training on Monday to prepare for notifying affected employees, who will receive email notifications starting Tuesday morning. CEO Andy Jassy has been actively working to reduce what he describes as an excess of bureaucracy within the company. This initiative includes cutting managerial roles and leveraging artificial intelligence to automate routine tasks. Jassy has previously mentioned that the increased use of AI tools would likely lead to further job cuts, particularly in automating repetitive and routine tasks. Earlier this year, he set up an anonymous complaint line to flag inefficiencies, which has generated around 1,500 responses and led to more than 450 process changes. The scope of this round of job cuts remains unclear, and the number may change over time as Amazon's financial priorities shift. Earlier reports indicated that the human resources division could face a reduction of approximately 15 percent. According to CNBC website, despite the impending layoffs, Amazon's stock saw a 1.2 percent increase, closing at $226.80. The company is scheduled to report its third-quarter earnings on Thursday./

Amazon cuts 14,000 corporate jobs as spending on artificial intelligence accelerates

Amazon will cut about 14,000 corporate jobs as the online retail giant ramps up spending on artificial intelligence while cutting costs elsewhere. In June CEO Andy Jassy, who has aggressively sought to cut costs since becoming CEO in 2021, said that he anticipated generative AI would reduce Amazon's corporate workforce in the next few years. Jassy said at the time that Amazon had more than 1,000 generative AI services and applications in progress or built, but that figure was a "small fraction" of what it plans to build. Jassy encouraged employees to get on board with the company's AI plans after it announced plans to invest $10 billion building a campus in North Carolina to expand its cloud computing and artificial intelligence infrastructure. Since 2024 started, Amazon has committed to about $10 billion apiece to data center projects in Mississippi, Indiana, Ohio and North Carolina as it builds up its infrastructure to tries to keep up with other tech giants making leaps in AI. Amazon is competing with OpenAI, Google, Microsoft, Meta and others. In a conference call with industry analysts in May, Jassy said the potential for growth in the company's AWS business is massive. "If you believe your mission is to make customers' lives easier and better every day, and you believe that every customer experience will be reinvented with AI, you're going to invest very aggressively in AI, and that's what we're doing. You can see that in the 1,000-plus AI applications we're building across Amazon. You can see that with our next generation of Alexa, named Alexa+," he said. Teams and individuals impacted by the job cuts will be notified on Tuesday. Most workers will be given 90 days to look for a new position internally, Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, wrote in a letter to employees on Tuesday. For those who can't find a new role at the company or who opt not to look for one will be provided transitional support including severance pay, outplacement services and health insurance benefits. Amazon has about 350,000 corporate employees and a total workforce of approximately 1.56 million. The cuts announced Tuesday amount to about a 4% reduction in its corporate workforce. Amazon's workforce doubled during the pandemic as millions stayed home and boosted online spending. In the following years, big tech and retail companies cut thousands of jobs to bring spending back in line. The cuts announced Tuesday suggests Amazon is still trying to get the size of its workforce right and it may not be over. It was the biggest culling at Amazon since 2023, when the company cut 27,000 jobs. Those cuts came in waves, with 9,000 jobs trimmed in March of that year, and another 18,000 employees two months later. Amazon has not said if more job cuts are on the way. Yet the jobs market which has for years been an pillar in the U.S. economy, is showing signs of weakening. Layoffs have been limited, but the same can be said for hiring. Government hiring data is on hold during during the government shut down, but earlier this month a survey by payroll company ADP showed a surprising loss of 32,000 jobs losses in the private sector in September. Many retailers are pulling back on seasonal hiring this year due to uncertainty over the U.S. economy and tariffs. Amazon Inc. said this month, however, that it would hire 250,000 seasonal workers, the same as last year's holiday season. Neil Saunders, managing director of GlobalData, said in a statement that the layoffs "represent a deep cleaning of Amazon's corporate workforce." "Unlike the Target layoffs, Amazon is operating from a position of strength," he said. "The company has been producing good growth, and it still has a lot of headroom for further expansion in both the U.S. and overseas." But Saunders noted that Amazon is not immune to outside factors, as global markets tighten and underlying costs climb. "It needs to act if it wants to continue with a good bottom line performance. This is especially so given the amount of investment the company is making in areas like logistics and AI. In some ways, this is a tipping point away from human capital to technological infrastructure," he said. Amazon will post quarterly financial results on Thursday. During its most recent quarter, the company reported 17.5% growth for its cloud computing arm Amazon Web Services.

Amazon to cut 30,000 corporate jobs -- 9% of worldwide office...

Amazon will slash 30,000 corporate jobs starting Tuesday, according to a report -- unleashing one of the US's biggest job bloodbaths this century as the company aggressively revamps its business with artificial intelligence. Sources told Reuters the reductions -- which amount to 9% of Amazon's global office-based workforce of 350,000 -- will begin Tuesday and could unfold over several weeks. The company did not immediately respond to a request for comment. The Seattle-based web giant's sweeping layoffs mark the biggest in a series of major contractions for the company, which has slashed tens of thousands of jobs since CEO Andy Jassy took over from the company's billionaire founder Jeff Bezos in 2021. In 2022 and 2023, Jassy cut a total of 27,000 jobs, Reuters reported. Those cuts targeted Amazon Web Services, its devices group and entertainment units including Prime Video and Twitch. Reuters reported that this week's layoffs could reach across multiple departments, among them human resources -- known internally as the People Experience and Technology group -- as well as devices, services and operations. Managers in affected areas were instructed Monday to complete training sessions on how to brief employees once email notifications start going out Tuesday morning, sources told Reuters. The latest reductions come as Amazon doubles down on artificial intelligence and robotics -- technologies Jassy has described as central to the company's next phase of growth. In a companywide email in June, Jassy warned employees to embrace automation or risk being left behind, writing that those who "become conversant in AI" would be best positioned to "help us reinvent the company." He also acknowledged that Amazon expected "efficiency gains from using AI extensively across the company" that would reduce the corporate workforce. Earlier this month, Fortune reported that Amazon was preparing to cut up to 15% of its People eXperience and Technology division, known internally as PXT -- a 10,000-person unit that includes recruiting and HR tech teams. Those layoffs are believed to be part of the new 30,000 total. The scale of the latest cuts positions Amazon among the largest corporate downsizers of 2025, alongside Meta and Google parent Alphabet, which have also trimmed staff as AI investments reshape the tech industry. The company has been aggressively reining in costs while committing more than $100 billion in capital spending this year to expand its cloud and AI infrastructure. Amazon's push to automate its operations has intensified in recent months. Internal strategy documents reviewed by The New York Times showed the company aims to replace more than 500,000 jobs with robots and automate 75% of its fulfillment operations by 2033. Executives have told the board that automation could allow Amazon to avoid hiring hundreds of thousands of additional workers in the US while doubling sales volume. Amazon said at the time that the internal documents did not represent its official hiring strategy and that the company would continue to create new jobs in logistics and technology. Jassy's cost-cutting measures have included mandatory return-to-office policies, stricter performance management and an annual process known internally as "unregretted attrition," which encourages managers to push out underperformers. The company's corporate workforce ballooned during the pandemic as online shopping surged. Since then, Jassy has sought to reverse that expansion while redirecting resources toward more profitable segments like AWS and advertising. Amazon's stock has risen about 20% over the past year but remains volatile amid investor scrutiny over its long-term profitability. While corporate layoffs loom, Amazon said it still plans to hire 250,000 seasonal warehouse and delivery workers for the holiday rush -- most of them temporary roles. Jassy has been pursuing a broad campaign to streamline Amazon's management structure, arguing that the company had become weighed down by unnecessary layers of oversight. Earlier this year, he said an anonymous feedback channel created to flag inefficiencies had drawn about 1,500 submissions and prompted more than 450 process changes.