Amazon has announced the elimination of approximately 14,000 corporate positions, marking another major workforce reduction as the company continues to focus on artificial intelligence (AI) and operational efficiency. The move follows an earlier Reuters report suggesting that as many as 30,000 employees could lose their jobs. Amazon later confirmed to Engadget that 14,000 roles were officially cut on the same day.
Strategic restructuring driven by AI
While Amazon did not disclose which departments were most affected, Bloomberg reports that teams in video games, logistics, payments, and cloud computing were among those affected. The layoffs are part of a broader shift within the company as it embraces AI technologies to streamline its business and adapt to rapid industry changes.
Beth Galetti, Amazon’s senior vice president of people experience and technology, explained the rationale behind the restructuring, noting that the company remains financially strong but must evolve to stay competitive. “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),” Galetti said.
She added that Amazon aims to operate with “fewer layers and more ownership” to increase agility and deliver faster results for customers and the business.
Ongoing layoffs and operational efficiency
This latest round of job cuts continues a trend of periodic layoffs across Amazon over the past few years. The company has made similar workforce reductions in several departments, including Prime Video, Amazon Web Services and its logistics operations. Even newly unionised warehouse workers have been affected by earlier cost-cutting efforts.
The company’s restructuring strategy appears focused on aligning its workforce with technological advancements and market demands. By reducing corporate layers and placing greater emphasis on AI integration, Amazon seeks to boost efficiency and remain a leader in digital innovation.
Despite these reductions, Amazon insists that it continues to perform well across its core business areas. The tech giant is investing heavily in AI-driven tools and automation across its global operations to enhance both the customer experience and long-term profitability.
Broader industry trend towards automation
Amazon’s decision mirrors a broader trend in the technology sector, where major firms are increasingly turning to AI to boost productivity and cut costs. Companies across industries are re-evaluating their workforce structures in response to rapid advances in machine learning and automation.
While AI promises increased efficiency and innovation, it has also triggered widespread job displacement. Amazon’s latest move underscores how deeply AI is reshaping the corporate landscape, prompting firms to make significant organisational changes to stay ahead.
The reduction of 14,000 roles, though substantial, underscores the scale of the transformation currently sweeping the tech industry as businesses adjust to what many see as the next major technological revolution.
