SEATTLE — Amazon announced Tuesday that it will lay off about 14,000 corporate workers, making it one of the largest job cuts in the company’s history. The move comes as Amazon focuses more on artificial intelligence and cloud infrastructure while trying to cut bureaucracy and “operate like the world’s biggest startup.”
Beth Galetti, Amazon’s senior vice president of People Experience and Technology, confirmed the cuts in a publicly posted memo to employees. “We’re making organizational changes across Amazon that will impact some of our teammates,” Galetti wrote. “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.”
The layoffs affect roughly 4% of Amazon’s 350,000-person corporate workforce and come amid a massive capital spending surge projected at more than $118 billion this year, much of it directed toward AI and data centers. According to Reuters, the restructuring could eventually affect as many as 30,000 roles across departments, including devices, advertising, Prime Video, human resources, and Amazon Web Services.
Galetti acknowledged that many employees will receive offers to find new internal positions. “We’re working hard to support everyone whose role is impacted, including offering most employees 90 days to look for a new role internally,” she said. “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.”
While the company remains profitable, posting an $18.2 billion net profit in the second quarter, up 35% from a year earlier, Amazon said the shakeup reflects a need to stay nimble in a rapidly evolving AI-driven marketplace. “Some may ask why we’re reducing roles when the company is performing well,” Galetti said. “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… 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.”
CEO Andy Jassy foreshadowed the move earlier this year, writing that AI would “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.”
The new layoffs build on a trend that began in 2022, when Amazon eliminated 27,000 roles as part of cost-cutting efforts following pandemic-era overexpansion. Those cuts were concentrated in the company’s Stores, AWS, and HR divisions and were described as part of a shift toward “leaner” operations.
Amazon is now the fifth-most-valuable company in the world, worth $2.4 trillion. Yet the company’s broader workforce — about 1.5 million worldwide, mainly in fulfillment and logistics — remains its operational backbone.
Industry analysts say Amazon’s move reflects a tipping point for tech employment as AI transforms traditional roles. As Neil Saunders, managing director at GlobalData, told investors, “Amazon is not immune… this is a tipping point away from human capital to technological infrastructure.”
Amazon is scheduled to report third-quarter earnings on Thursday. The company’s shift highlights both its dominance in the global market and its commitment to redefine itself in the AI age, even if it means cutting thousands of jobs.
