Key Takeaways
- Amazon will cut about 14,000 corporate jobs as it increases investment in artificial intelligence (AI).
- Executives say the move aims to make the company “leaner” and more efficient.
- CEO Andy Jassy and HR leader Beth Galetti emphasize AI’s long-term benefits despite workforce reductions.
- Analysts note Amazon remains financially strong but faces pressure from rising costs and slower cloud growth.
- The layoffs mirror broader AI-driven shifts across the global tech industry.
Amazon to Lay Off 14,000 Corporate Employees as AI Revolutionizes Its Operations
Amazon announced Tuesday it will eliminate around 14,000 corporate positions worldwide as part of an effort to streamline operations and expand its artificial intelligence (AI) initiatives. The company said the restructuring aims to “reduce bureaucracy, remove layers, and shift resources” toward its most strategic priorities, according to a statement shared with employees.
Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, explained that the company must be “organized more leanly, with fewer layers and more ownership,” calling AI “the most transformative technology we’ve seen since the internet.”
AI as the Catalyst for Change
The layoffs reflect how automation is reshaping the corporate landscape. CEO Andy Jassy previously signaled that AI would reduce certain roles while creating new ones. In a June memo titled “Some Thoughts on Generative AI,” Jassy wrote that AI tools would bring “efficiency gains” but also a need for different types of jobs.
Amazon has committed billions to AI infrastructure, including $10 billion data center investments across several U.S. states, while developing over 1,000 AI applications, including the next-generation Alexa+.
Industry and Market Context
The announcement follows widespread job cuts at Meta, Microsoft, and Salesforce, each citing similar efficiency gains through AI. Despite the reductions, analysts describe Amazon’s financial position as strong, reporting 13% year-over-year revenue growth to $167.7 billion. However, experts like Neil Saunders of GlobalData note that tight markets and high investment costs require Amazon to balance growth with fiscal discipline.
Support for Affected Workers
Amazon said employees affected by the cuts will receive 90 days to apply for internal roles, with severance pay and outplacement support available to those unable to stay. The company will release its third-quarter earnings later this week, with analysts expecting more than $170 billion in revenue.
For HR professionals and SHRM-CP candidates, Amazon’s restructuring offers a clear example of how companies manage workforce transitions, ethical downsizing, and change management during technological disruption. Understanding these processes is essential for HR leaders navigating the human side of digital transformation.
Meanwhile, for CompTIA candidates, particularly those pursuing A+, Network+, or Data+ certifications, Amazon’s heavy AI and cloud investments illustrate the growing demand for IT professionals skilled in maintaining and securing the systems that power next-generation AI tools.
Also in the News: Foxconn to invest up to $1.37 billion in AI compute cluster, supercomputing centre