Amazon has confirmed it is slashing corporate jobs by a staggering 14,000, following earlier reports that the company was poised to cut as many as 30,000 positions. The move is part of Amazon's efforts to slim down its vast operation and trim costs, with CEO Andy Jassy previously warning white-collar workers that their jobs could be taken over by artificial intelligence.
As part of this wave of cuts, Amazon is aiming to further reduce bureaucracy, remove layers, and redirect resources to focus on high-priority areas. The company's senior vice-president, Beth Galetti, wrote in a memo to employees that the layoffs are intended to "get even stronger" by investing in core areas.
While the 14,000 job losses represent only a small fraction of Amazon's sprawling global workforce, they amount to a significant chunk of its roughly 350,000 corporate employees. The move has sparked concern among staff, who may face redundancy notifications via email.
Amazon's decision follows similar layoffs at other tech giants, including Microsoft, Meta, and Alphabet. These companies have all cut tens of thousands of jobs in the past three years as they adapt to changing market conditions.
The company's efforts to reduce costs come after a period of rapid growth during the pandemic, when Amazon embarked on an extraordinary recruitment drive that saw its workforce surge. Now, with AI agents and generative AI systems expected to automate certain tasks, the company is seeking to streamline its operations and focus on high-priority areas.
Shares in Amazon rose 1.2% after reports of the job cuts emerged, but the company's quarterly earnings report later this week will provide a clearer picture of how the layoffs are impacting its financial performance.
As part of this wave of cuts, Amazon is aiming to further reduce bureaucracy, remove layers, and redirect resources to focus on high-priority areas. The company's senior vice-president, Beth Galetti, wrote in a memo to employees that the layoffs are intended to "get even stronger" by investing in core areas.
While the 14,000 job losses represent only a small fraction of Amazon's sprawling global workforce, they amount to a significant chunk of its roughly 350,000 corporate employees. The move has sparked concern among staff, who may face redundancy notifications via email.
Amazon's decision follows similar layoffs at other tech giants, including Microsoft, Meta, and Alphabet. These companies have all cut tens of thousands of jobs in the past three years as they adapt to changing market conditions.
The company's efforts to reduce costs come after a period of rapid growth during the pandemic, when Amazon embarked on an extraordinary recruitment drive that saw its workforce surge. Now, with AI agents and generative AI systems expected to automate certain tasks, the company is seeking to streamline its operations and focus on high-priority areas.
Shares in Amazon rose 1.2% after reports of the job cuts emerged, but the company's quarterly earnings report later this week will provide a clearer picture of how the layoffs are impacting its financial performance.