Major Workforce Reduction Announced
Amazon has announced plans to lay off 14,000 corporate employees worldwide as part of a major restructuring effort aimed at simplifying its management structure and redirecting resources toward artificial intelligence (AI).
According to the company, the move is designed to reduce bureaucracy, eliminate redundant administrative layers, and focus on areas with the highest potential for growth.
Beth Galetti, Amazon’s Senior Vice President for People Experience and Technology, said the company would continue hiring selectively in key areas next year. While some departments will see workforce reductions, others — particularly those related to AI and cloud computing — are expected to expand.
Post-Pandemic Workforce Adjustment
Industry analysts note that Amazon, like many tech giants, over-hired during the COVID-19 pandemic to meet surging demand for online shopping and delivery services. Now, as global e-commerce growth stabilizes, the company is scaling back to restore operational efficiency.
At the end of last year, Amazon employed more than 1.56 million people globally, including around 350,000 corporate workers. The latest cuts will primarily affect the corporate segment.
Affected employees will be given 90 days to apply for new roles within Amazon. The company said it will give internal candidates priority consideration during rehiring.
AI to Take Center Stage
Amazon CEO Andy Jassy stated that the company’s future lies in generative AI, a technology that can create content, analyze data, and automate tasks traditionally handled by humans.
AI is transforming how we operate, Jassy said. We’re investing to ensure Amazon remains at the forefront of innovation while operating more efficiently.
This year alone, Amazon plans to invest around $118 billion, with a significant portion dedicated to expanding its cloud computing and AI infrastructure.
Broader Industry Trend
Amazon’s decision mirrors similar moves by other major tech companies, including Google, Meta, and Microsoft, which have all reduced staff while shifting focus toward automation and AI-driven growth.
Experts believe that as artificial intelligence continues to reshape industries, many firms will reallocate human and financial resources toward developing next-generation technologies.
Despite the layoffs, Amazon maintains that it remains committed to supporting affected employees and ensuring a smooth transition. The company says the restructuring will position it for long-term sustainability in an increasingly competitive digital economy.
