Amazon announced plans to lay off 14,000 corporate employees as part of efforts to simplify operations and invest heavily in artificial intelligence. The cuts, the company’s second largest after 2022’s 22,000 layoffs, are aimed at streamlining decision-making and eliminating layers of management.
Beth Galetti, Amazon’s senior vice president of people experiences and technology, said in a memo that the move would allow the company to “invest in its biggest bets” as it adapts to the rapidly changing AI landscape. CEO Andy Jassy had previously stated that AI automation would reduce the need for some jobs while creating new opportunities in other areas.
Amazon spent $55.6 billion in the first half of 2024 on tech infrastructure to support its AI and cloud services, with AWS now accounting for 18% of total revenue. The company plans to continue reorganizing in 2026 to “realize efficiency gains” while hiring in key AI-focused departments.
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Affected workers will receive internal job placement support, severance pay, and extended benefits as part of the transition.
