Amazon is set to cut approximately 14,000 positions within its corporate workforce. This move, driven by the company's efforts to reduce costs, comes after reports had suggested a potential job reduction of up to 30,000 roles.
Beth Galetti, a senior executive at Amazon, communicated the decision to employees through a recent message. She explained the layoffs as part of Amazon's ongoing initiative to streamline operations by decreasing bureaucracy, removing layers, and aligning resources with customer-centric priorities.
Though Galetti didn’t specify which roles would be affected or their geographic locations, she mentioned that most impacted employees would have a 90-day period to secure new positions within the company.
Galetti referred to an earlier message from CEO Andy Jassy in June. Jassy had emphasized the role of generative AI in driving efficiency—a point that indirectly linked to the current job cuts—and highlighted AI’s pivotal role in shaping Amazon's future strategies:
Inquiries may arise about the need for role reductions when our performance is strong. We consistently deliver excellent customer experiences and innovation at a rapid pace, achieving robust business results. However, we must adapt quickly in light of the world’s swift changes. This era of AI marks the most transformative shift since the Internet, significantly boosting innovation faster than before in both existing and new markets. We believe we must streamline our organization with fewer layers and greater responsibility to swiftly serve our customers and business needs.
Amazon spokesperson Kelly Nantel clarified in a statement that AI is not the primary driver for most of these job cuts, though she did not provide detailed reasons.
“Last year, our mission was to enhance our culture and teams by minimizing layers, fostering ownership, and cutting down on bureaucracy to expedite and support collaboration. These efforts have manifested in positive outcomes for both our teams and our customers. Today's reductions continue this direction,” Nantel elaborated.
Galetti also noted that although Amazon aims to resume hiring in strategic areas by 2026, they are committed to searching for areas that offer "efficiency gains," which implies potential further job reductions in the future.
Previously, at the close of 2022 moving into 2023, Amazon conducted a significant round of layoffs affecting 27,000 employees. The company’s strategic direction reveals its focus on leveraging automation, robotics, and AI to cut labor costs while potentially replacing thousands of human jobs.