Amazon to Cut 14,000 Corporate Jobs Amid AI Restructuring and Cost Cuts

Amazon to Lay Off About 14,000 Corporate Employees Amid AI Restructuring

Amazon, the global e-commerce and technology giant, has announced plans to cut around 14,000 corporate jobs as part of a major cost-reduction and AI-driven restructuring initiative. The company said the move aims to simplify operations, improve efficiency, and align with its growing use of artificial intelligence (AI) and automation across business units.

CEO Andy Jassy explained that Amazon expanded rapidly during the pandemic, hiring at an unprecedented pace to meet global demand. However, as market conditions evolved, the company is now restructuring to ensure long-term sustainability and efficiency. “We’re optimizing our workforce to align with a future where AI plays a central role in productivity and innovation,” Jassy said.

While the official figure stands at about 14,000 layoffs, multiple reports — including from Reuters — suggest that the number could reach up to 30,000, representing nearly 10% of Amazon’s corporate workforce. The departments most affected include Human Resources (People Experience & Technology), Operations, Devices & Services, and Amazon Web Services (AWS) — all critical parts of the company’s structure.

According to internal sources, some employees who did not comply with Amazon’s new “five-day office work” policy were among those dismissed. In some cases, these departures were categorized as “voluntary resignations,” offering limited severance benefits.

Interestingly, even as Amazon trims its corporate staff, the company announced plans to hire around 250,000 seasonal workers for the upcoming holiday season. This shows that while permanent workforce reductions are aimed at cutting costs, Amazon remains committed to meeting consumer demand during peak periods.

Industry analysts view the move as part of a broader global trend among major tech companies to leverage AI for efficiency, reducing dependency on human labor in repetitive and operational roles. They predict that the job market will increasingly favor individuals skilled in AI systems, automation, and data science, as corporate structures evolve around technology.

Despite the large-scale layoffs, Amazon has emphasized that it will provide career assistance and transition support to affected employees. The restructuring reflects not just a cost-saving measure but also a major shift in how one of the world’s largest companies is redefining productivity, efficiency, and the role of human workers in an AI-powered future.