Amazon Cuts 14,000 Corporate Jobs Amid AI Efficiency Drive
Amazon Cuts 14,000 Corporate Jobs Amid AI Efficiency Drive

Amazon Cuts 14,000 Corporate Jobs Amid AI Efficiency Drive

News summary

Amazon announced it will cut approximately 14,000 corporate jobs, representing about 4% of its corporate workforce of around 350,000 employees, as part of a broader effort to reduce bureaucracy and increase efficiency amid investments in artificial intelligence (AI). CEO Andy Jassy and senior executives have emphasized that AI adoption will reduce the need for certain corporate roles, prompting the company to restructure and focus resources on its biggest strategic priorities. While layoffs will impact some areas, Amazon plans to continue hiring in key growth sectors and is offering impacted employees support such as severance pay, health benefits, and internal job search opportunities. The cuts are expected to continue into 2026, with the potential for total reductions to reach up to 30,000 jobs, surpassing previous layoffs in 2023. These workforce changes come as Amazon adjusts after pandemic hiring surges and seeks to align its organizational structure with the rapid pace of AI-driven innovation. The Seattle area, home to Amazon's largest corporate workforce, is likely to be particularly affected by the layoffs amidst broader tech industry cutbacks.

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