Amazon Plans Major Job Cuts Amid AI Push

Wed Oct 29 2025 15:56:19 GMT+0200 (Eastern European Standard Time)

Amazon has officially announced plans to lay off approximately 14,000 employees in a move to streamline its corporate structure and invest more in artificial intelligence (AI).

In a recent announcement, Amazon revealed it would cut around 14,000 jobs from its corporate workforce to better adapt to the evolving landscape influenced by AI. Despite a strong financial performance, the company is looking to reorganize to enhance agility and customer focus. The layoffs come as part of broader efforts in the tech industry, as firms adjust post-pandemic hiring sprees and shift resources toward AI innovations.

Amazon has confirmed it plans to cut thousands of jobs, saying it needs to be 'organised more leanly' to seize the opportunity provided by artificial intelligence (AI).

The tech giant said on Tuesday it would reduce its global corporate workforce by 'approximately 14,000 roles'.

Earlier reporting had suggested it was planning to lay off as many as 30,000 workers.

Beth Galetti, a senior vice president at Amazon, wrote in a note to staff that the move would make the company 'even stronger' by shifting resources 'to ensure we're investing in our biggest bets and what matters most to our customers' current and future needs'.

She acknowledged that some would question the move given the company was performing well. At the end of July, Amazon reported second-quarter results that beat Wall Street expectations on several counts, including a 13% year-over-year increase in sales to $167.7bn (£125bn).

But Ms Galetti said the cuts were needed because AI was 'the most transformative technology we've seen since the Internet' and was 'enabling companies to innovate much faster than ever before.'

'We're convicted that we need to be organised more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business,' she added.

The note, shared with Amazon employees earlier on Tuesday, said the company was 'working hard to support everyone whose role is impacted' - including by helping those affected find new roles within Amazon.

Those who cannot will receive 'transition support' including severance pay, it said.

This includes around 350,000 corporate workers, which include those in executive, managerial, and sales roles, according to figures that Amazon submitted to the US government last year.

Amazon boss Andy Jassy has since focused on reducing spending as the company invests heavily in AI tools to boost efficiency. He mentioned that the increase in AI tools will likely lead to job cuts as machines take over routine tasks.

The company has carried out several rounds of cuts to its corporate division in recent years and laid off around 27,000 workers over several months in 2022, as rivals similarly looked to reverse hiring increases made during the pandemic.

Amazon will report its latest quarterly results on Thursday for the period ending 30 September.