Amazon $AMZN said Tuesday that it will reduce its corporate workforce by about 14,000 roles, framing the decision as part of a broader shift toward AI and a leaner structure.
Bosses at the e-commerce and tech giant said they are "convicted that we need to be organized more leanly" to move quickly on AI
Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images
Amazon $AMZN said Tuesday that it will reduce its corporate workforce by about 14,000 roles, framing the decision as part of a broader shift toward AI and a leaner structure.
Beth Galetti, senior vice president of people experience and technology, told employees the cuts are aimed at making the organization faster and more efficient.
She wrote in a memo: “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 and what matters most to our customers’ current and future needs.
“While this will include reducing in some areas and hiring in others, it will mean an overall reduction in our corporate workforce of approximately 14,000 roles.”
Galetti said affected employees will be supported through internal transfers and transition services like “severance pay, outplacement services, health insurance benefits.”
She pointed to AI as reshaping how Amazon operates, calling it “the most transformative technology we’ve seen since the Internet, and it's enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones). We’re convicted that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.”
Chief Executive Andy Jassy signaled earlier this year that the workforce would shrink as more tasks were automated. In June, he said advances in AI would “reduce” the company’s corporate headcount in the years ahead. Jassy also made layoffs in late 2022 and early 2023 that cut about 27,000 corporate jobs.
Galetti also referenced Jassy’s push for cultural change, citing his earlier note to staff about Amazon operating “like the world’s largest startup.” She added that the latest cuts are part of that effort to increase ownership and reduce layers.
Amazon employed about 1.55 million full-time and part-time workers worldwide as of June 30, including warehouse staff, drivers and corporate employees. Reuters initially reported the job losses could ultimately affect as many as 30,000 roles.
The company is due to report earnings for the quarter ending Sept. 30 on Thursday.
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