Amazon Announces Massive Layoffs, 14,000 Jobs Cut As AI Takes Centre Stage
In June, Jassy had indicated that the e-commerce major’s headcount would likely shrink as automation and AI increasingly took over tasks traditionally handled by humans.
Amazon.com Inc on Tuesday confirmed plans to cut nearly 14,000 corporate positions, just months after Chief Executive Officer Andy Jassy warned that artificial intelligence (AI) would reshape the company’s workforce.
AI Taking Over
In June, Jassy had indicated that the e-commerce major’s headcount would likely shrink as automation and AI increasingly took over tasks traditionally handled by humans.
Beth Galetti, Senior Vice President of People Experience and Technology at Amazon, said in a company blog post that the decision was part of ongoing efforts to streamline operations and reallocate resources strategically.
“The reductions we’re sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets,” Galetti stated.
Multiple Divisions Affected
According to a Bloomberg report citing people familiar with the matter, the layoffs span several departments, including logistics, payments, video games, and the cloud-computing division.
Galetti also suggested that more reductions could follow, even as Amazon continues to hire in certain growth areas through 2026.
Addressing the rationale behind the job cuts, Galetti said, “Some may ask why we’re reducing roles when the company is performing well. What we need to remember is that the world is changing quickly. This generation of AI is the most transformative technology we’ve seen since the Internet, and it's enabling companies to innovate much faster than ever before.”
She added, “Looking ahead to 2026, as Andy talked about earlier this year, we expect to continue hiring in key strategic areas while also finding additional places we can remove layers, increase ownership, and realise efficiency gains.”
Employee Reactions Online
News of the layoffs quickly spread across internal and external chat groups, where Amazon employees discussed affected departments and exchanged updates on impending notifications. Many also shared practical advice on safeguarding personal files from company systems and sought recommendations for firms currently hiring, reports said.
Layoffs Part Of A Broader Pattern
The latest cuts follow previous rounds of reductions that occurred gradually over five months about three years ago. Those layoffs began in the autumn after Amazon’s annual planning cycle, continuing through January and March following the holiday season.
Earlier reports suggested that Amazon might cut as many as 30,000 roles this time - a number that would surpass the 27,000 corporate job losses recorded between late 2022 and early 2023, when Jassy implemented widespread cost-cutting following a pandemic-era expansion.
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