Amazon Confirms Major Workforce Reduction as AI Investments Grow

Amazon has officially announced a major round of job cuts in its corporate division, confirming that approximately 14,000 roles will be eliminated across its global offices. The company says the decision is part of a long-term strategy to operate in a leaner, faster, more AI-focused way.

Beth Galetti, Senior Vice President at Amazon, informed employees through an internal note that the company wants to strengthen its ability to innovate and move quickly. According to her, restructuring will help the tech giant allocate more resources to projects that matter the most to customers now — and in the future.

Why Is Amazon Cutting Jobs Despite Strong Performance?

Amazon has been reporting solid financial results. In the last reported quarter, the company recorded:

• 13% year-on-year growth
• Revenue reaching $167.7 billion

So why cut jobs when business is booming?

➡️ The answer lies in Artificial Intelligence (AI).

Galetti described AI as the most revolutionary technology since the rise of the Internet — capable of transforming industries and accelerating innovation at an unprecedented pace. To keep up with the competition, Amazon believes it must restructure and reduce layers of management so decisions can be made more rapidly.

CEO Andy Jassy already hinted earlier this year that AI automation will replace certain jobs while creating demand for completely new roles.

Which Teams Are Impacted?

The layoffs will affect several major corporate areas, including:

• Human Resources
• Amazon Web Services (Cloud)
• Advertising Teams
• Various managerial and support departments

The reductions will not all happen immediately and may expand further. Some reports suggest the total number of affected jobs could eventually reach up to 30,000, roughly 10% of Amazon’s corporate workforce.

Support for Affected Employees

Amazon says it is helping workers transition by:

• Offering most employees 90 days to find another internal job role
• Providing severance packages and other career support for those who exit

At this stage, the company has not confirmed how many positions in the UK, India or other regions will be impacted.

The Bigger Picture: Pandemic Hiring Boom Reverses

During the Covid-19 surge in online shopping and cloud services, Amazon expanded very aggressively, bringing its global headcount to more than 1.5 million employees, including around 350,000 corporate staff.

However, as economic conditions shift and AI-driven efficiency grows, Amazon — like many other tech leaders — is tightening budgets and optimizing workforce size.

This isn’t the first major restructuring:

• In 2022, Amazon reduced 27,000 jobs
• Cost-cutting remains a priority in 2025 as AI spending continues to rise

Investors are now looking closely at how quickly Amazon’s AI investments, especially in AWS, can boost growth compared to cloud competitors like Microsoft and Google.

AI Innovation vs. Jobs: A New Phase of Tech Industry Change

Technology experts say the current shift is “inevitable.” As AI tools improve and automation spreads, many traditional software and support roles are likely to decline.

Companies now face a major challenge:

✅ Keep innovating in AI

⚠️ But manage workforce disruptions responsibly

The world will be watching Amazon’s next financial results — and how effectively the company balances AI-powered progress with human employment.