Amazon Confirms 14,000 Corporate Job Cuts as AI Takes Hold
In an internal memo on Tuesday, Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, told employees the restructuring will help the company “invest in our biggest bets” and strengthen its ability to meet “customers’ current and future needs.”
While earlier reports suggested up to 30,000 layoffs, the confirmed figure stands at 14,000 roles within Amazon’s global corporate division. The company, which employs 1.5 million people worldwide — including 350,000 corporate workers — said it is working to support those impacted with severance pay and help finding new roles within the organization.
Why Amazon Is Cutting Jobs
Galetti explained that the cuts are driven by the need to adapt quickly to the opportunities presented by AI, calling it “the most transformative technology we’ve seen since the Internet.”
She said Amazon must operate with “fewer layers and more ownership” to move faster and innovate more efficiently. Despite strong financial performance, Galetti emphasized that these changes are essential to ensure long-term growth.
At the end of July, Amazon reported second-quarter revenue of $167.7 billion (£125 billion) — a 13% year-over-year increase, exceeding Wall Street expectations.
AI Investment and Efficiency Push
Under CEO Andy Jassy, Amazon has been investing heavily in AI tools designed to boost efficiency across its retail, logistics, and cloud computing divisions. Jassy previously acknowledged that as AI automates routine tasks, some job losses are “inevitable.”
“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy said in June.
Ongoing Restructuring at Amazon
This latest round of layoffs follows several previous cuts. Amazon eliminated around 27,000 corporate roles in 2022, aligning with other tech giants that scaled back after the pandemic hiring surge.
The company’s cloud division, Amazon Web Services (AWS), has recently experienced slower growth compared to rivals Microsoft Azure and Google Cloud, raising investor concerns about the pace of Amazon’s AI monetization.
Analysts: AI-Driven Job Cuts Are “Inevitable”
Industry experts say Amazon’s move reflects a broader trend across the tech sector. Ben Barrington, technology analyst at Quilter Cheviot, told the BBC that companies are restructuring to leverage AI more effectively.
“We are already seeing jobs in software development being shed thanks to AI tools,” Barrington said. “Big companies have the data and capability to apply AI in ways that unfortunately make some roles redundant.”
What’s Next for Amazon
Amazon will release its Q3 2025 earnings report on Thursday, covering results through 30 September. Analysts expect investors to closely watch how Amazon’s restructuring and AI investments impact its profitability and long-term growth.
The company has not yet confirmed whether the UK workforce will be affected by the latest round of layoffs.
Additional reporting by Philippa Wain
