Amazon has confirmed plans to cut nearly 14,000 corporate jobs, marking another major shift in how the company is reorganizing around artificial intelligence. The move comes months after CEO Andy Jassy warned that automation and AI would begin replacing certain roles traditionally handled by humans.
AI at the Center of Amazon’s Restructuring
Back in June, Jassy had hinted that as AI tools became more capable, Amazon’s workforce would likely shrink. On Tuesday, Beth Galetti, Senior Vice President of People Experience and Technology, said in a company blog post that the layoffs were part of a broader effort to “reduce bureaucracy, remove layers, and focus investments on our biggest bets.”
The cuts span several divisions, including logistics, payments, video games, and cloud computing, according to a Bloomberg report citing people familiar with the matter. While Amazon hasn’t detailed which specific teams will be hit hardest, the scope suggests a deep organizational reshuffle rather than isolated cost-trimming.
More Layoffs Could Follow
Galetti’s statement also hinted that this may not be the end of the reductions. She said Amazon plans to continue hiring in key strategic areas by 2026, but will keep trimming management layers and redundant roles. “Some may ask why we’re reducing roles when the company is performing well,” she wrote. “The reality is that AI is transforming how businesses operate, and we have to adapt quickly to stay ahead.”
The company’s leadership believes this round of restructuring will make Amazon “leaner and more agile” as it ramps up investments in AI-driven operations and automation.
Employee Reaction and Uncertainty
News of the layoffs triggered an immediate reaction across Amazon’s internal chat groups and social platforms. Employees shared notes on which departments might be affected, compared messages about potential terminations, and traded advice on backing up personal data or finding new roles elsewhere.
For many, the announcement revived memories of Amazon’s last major layoff cycle, which unfolded gradually over five months in late 2022 and early 2023. That period saw about 27,000 corporate employees lose their jobs as the company adjusted to a post-pandemic slowdown and aimed to rein in costs after an extended hiring surge.
A Pattern of Deep Cuts
Earlier reports suggested Amazon could eliminate as many as 30,000 jobs this time, which would make this round even larger than previous cuts. As of June 30, Amazon employed around 1.55 million people globally, most of them in warehouses. The corporate workforce makes up about 3.5 lakh employees, meaning the current layoffs affect roughly 4% of that segment.
Under Jassy’s leadership, Amazon has made repeated efforts to flatten its hierarchy and improve efficiency, particularly after the rapid expansion during the pandemic years. Insiders say that over the summer, the company began setting higher attrition targets and freezing new hires in areas like logistics and advertising—signs that the cost-cutting push was already underway.
The Bigger Picture
What this really shows is that even the world’s largest tech employers are not immune to AI’s disruptive effect on white-collar work. For Amazon, the balance now lies in using automation to boost performance without eroding the human backbone that built the company.
