Amazon will lay off about 14,000 corporate employees and may cut up to 30,000 jobs as part of an AI-driven restructuring and cost-cutting initiative, reversing its pandemic hiring spree.
Background
Amazon is preparing to cut up to 30,000 corporate jobs – nearly 10% of its white‑collar workforce. Reports say the company has already begun training managers to deliver the news to employees and the cuts could begin this week.
Confirmed layoffs and AI‑driven restructuring
In an internal memo, Amazon later confirmed that about 14,000 corporate roles will be eliminated across its human resources, devices and services, operations and AWS divisions. Chief executive Andy Jassy said the company is "removing layers to get more efficient" and that rapid progress in generative AI is automating many support functions. Amazon cited the need to reduce bureaucracy as it reorganises around artificial intelligence.
Why such large cuts?
These layoffs are part of Amazon’s effort to unwind a pandemic‑era hiring spree. During the pandemic the company nearly doubled its workforce, adding more than 300,000 staff to meet surging e‑commerce demand. With growth slowing and interest rates rising, Amazon has come under pressure to cut costs. Executives said many positions being cut are either duplicative or have been superseded by AI tools. Analysts note it will be the biggest round of corporate layoffs since 2022.
Impact on employees and the industry
The cuts could unsettle thousands of high‑paid workers in Seattle and other tech hubs. Amazon has not specified how many laid‑off staff will be offered new roles, though it says it will provide severance and support. Industry observers warn that more companies may follow suit as AI transforms corporate back offices. Despite the reductions, Amazon will continue hiring in growth areas such as cloud computing, advertising and generative AI while trimming elsewhere.
Conclusion
Amazon’s plan to cut up to 30,000 corporate jobs underscores the shifting priorities of tech giants. As artificial intelligence automates tasks once handled by humans, companies are streamlining operations and focusing on profitable core businesses. For workers, the news is a stark reminder that the AI revolution is already reshaping the job market.
