Amazon has announced plans to lay off 14,000 corporate employees this year as part of a major restructuring to prepare for broader adoption of artificial intelligence (AI).
In a memo to staff, Beth Galetti, Senior Vice President of People Experience, said the company will continue hiring in key strategic areas while streamlining operations to become “leaner, with fewer layers and more ownership.”
“We expect to continue hiring in key strategic areas while also finding additional places we can remove layers, increase ownership, and realize efficiency gains,” Galetti said in a statement posted on Amazon’s blog.
Reuters earlier reported that total job cuts could eventually reach 30,000.
Galetti explained that the move aligns with CEO Andy Jassy’s vision of running Amazon “like the world’s biggest startup,” enabling the company to stay nimble as AI reshapes the technology industry.
“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,” Galetti added.
Amazon, which has over 350,000 corporate workers, said layoffs will begin Tuesday. Most affected employees will have 90 days to seek internal transfers, while those unable to secure new roles will receive severance packages and benefits.
In June, Jassy had said AI-driven efficiency gains would eventually reduce Amazon’s human workforce. “As we roll out more generative AI and agents, we will need fewer people doing some of the jobs that are being done today,” he noted.
This marks Amazon’s second major layoff in recent years after cutting 27,000 workers in 2023. Analysts say the decision reflects a shift from human labor to technological infrastructure amid rising global costs and tightening markets.
