Amazon Cuts 14,000 Corporate Jobs to Boost AI Focus
Amazon has announced big changes to its workforce. The company will cut about 14,000 jobs in its corporate division. This move aims to make the team leaner for AI growth.
The news came in a note from Beth Galetti, Amazon’s head of people. She said the cuts help the firm stay nimble. Amazon plans to hire in some spots but shrink overall.
This is the biggest round of corporate layoffs for Amazon. It tops the 27,000 jobs cut in 2022 and 2023. Those earlier cuts hit areas like stores and web services.
The company hired fast during the pandemic boom. Online shopping spiked then. Now, Amazon trims back to match today’s needs.
AI plays a key role here. CEO Andy Jassy warned months ago about job shifts from AI. It can handle routine tasks better, freeing up resources.
Amazon has around 350,000 corporate workers. The 14,000 cuts make up about 4% of that group. The total workforce sits at 1.56 million people.
More changes could come in 2026. Managers got training on Monday to share the news. Layoff emails started hitting inboxes on Tuesday.
The tech world sees similar moves. Firms in banking and retail also cut jobs for AI. They flatten teams to speed up work.
Amazon’s shares rose 1.2% on Monday. The company reports earnings later this week. Investors watch how AI spending pays off.
US Senator Bernie Sanders spoke out. He urged Jeff Bezos to explain AI’s job impact. A report said robots could cut 500,000 warehouse roles over time.
Amazon keeps hiring in key areas. Like same-day grocery delivery in over 1,000 cities. Plans call for doubling that by year’s end.
This step shows how AI reshapes big companies. It balances cost cuts with new tech bets.
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