Amazon Cuts 14,000 Jobs as AI Investment Reshapes Workforce
TLDR
- Amazon will cut approximately 14,000 corporate jobs from its workforce of around 350,000 corporate employees
- The layoffs represent about 4% of Amazon’s corporate workforce and come as the company restructures to reduce costs
- CEO Andy Jassy previously indicated that adoption of AI tools would lead to workforce reductions in coming years
- Earlier reports suggested cuts could reach 30,000 jobs, though Amazon confirmed the lower figure of 14,000
- Amazon has been making job cuts across multiple divisions including books, devices, services, and its Wondery podcast unit
Amazon confirmed on Tuesday it will eliminate about 14,000 corporate positions. The company employs roughly 350,000 corporate workers out of a total workforce of 1.56 million people.
The job cuts represent approximately 4% of Amazon’s corporate staff. These employees work in executive, managerial, and sales positions across the company’s operations.
Earlier reports had suggested Amazon planned to cut up to 30,000 jobs. Reuters first reported on Monday that layoffs of that size could begin as soon as Tuesday. However, the company confirmed the smaller number of 14,000 cuts.
The reduction comes as Amazon invests heavily in artificial intelligence technology. CEO Andy Jassy stated in June that AI adoption would decrease the need for certain corporate roles over the next few years.
Restructuring Across Multiple Divisions
Amazon has been making workforce changes across several business units in recent months. The company has cut jobs in its books division, devices and services unit, and Wondery podcast division.
These cuts follow a pattern established during the pandemic recovery period. Amazon hired large numbers of workers during COVID-19 to meet increased demand for online shopping and digital services.
The company now faces the task of adjusting its workforce size. Jassy has focused on reducing operational costs while funding AI development projects.
AI Tools Replacing Traditional Tasks
Companies across the technology sector are using AI to automate work previously done by humans. These tools can write software code and handle routine administrative tasks.
Amazon is among several major tech firms implementing AI systems to reduce costs. The company sees these tools as a way to maintain efficiency with fewer employees.
Jassy explained that AI would change the types of jobs needed at Amazon. Some current positions will become unnecessary while new roles will emerge. The shift reflects broader changes in how technology companies operate.
Amazon declined to specify which geographic regions or specific divisions would see the most cuts. The company also did not provide a timeline for when the layoffs would be completed.
This marks one of the largest workforce reductions at Amazon since 2022. During that year, the company eliminated approximately 27,000 positions over several months.
The 14,000 job cuts announced Tuesday represent a small fraction of Amazon’s total employee base. Most of Amazon’s 1.56 million workers are employed in warehouse and logistics operations rather than corporate offices.
Companies are increasingly relying on AI agents and automated systems to perform tasks that once required human workers. This trend has accelerated as AI technology has become more capable and widely available.
Amazon submitted workforce data to the US government last year showing it employed about 350,000 corporate workers. The new cuts will reduce that number by 4%.
The post Amazon Cuts 14,000 Jobs as AI Investment Reshapes Workforce appeared first on CoinCentral.
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