Amazon confirms 14,000 job cuts amid AI push, more layoffs likely – here’s what we know
E-commerce giant Amazon.com Inc. confirmed plans to lay off nearly 14,000 corporate employees, just months after Chief Executive Andy Jassy warned that artificial intelligence would reduce the company’s workforce.
In June, Jassy hinted that the company’s workforce would likely shrink due to the increased use of AI to finish jobs usually done by humans.
“The discounts we’re sharing today are a continuation of that work to get even stronger by further reducing red tape, removing layers, and shifting resources to ensure we’re investing in our biggest investments,” Beth Galetti, senior vice president of human experience and technology at Amazon, said in a blog post Tuesday.
The layoffs affected a wide range of departments, including logistics, payments, video games and the cloud computing division, Bloomberg reported, citing people with knowledge of the development.
New layoffs are expected
Galetti signaled further job cuts, citing Amazon’s intention to hire in key areas in 2026.
Speaking about the reason for the layoffs, he said: “Some may ask why we are reducing our roles when the company is performing well. What we need to remember is that the world is changing rapidly. This generation of AI is the most transformative technology we have seen since the internet, allowing companies to innovate faster than ever before.”
He added: “As Andy mentioned earlier this year, as we look to 2026, we expect to continue hiring in key strategic areas, while also finding additional places where we can remove layers, increase ownership and achieve efficiency gains.”
How did Amazon employees react?
After Amazon announced it would lay off 14,000 people on Tuesday, employees began gathering in social media chat rooms. They discussed which departments were affected and shared information about messages employees might receive regarding upcoming layoffs. They also exchanged advice on how to retrieve personal files from work computers before access was cut off and sought tips on companies currently hiring, the news portal reported.
About layoffs at Amazon
The last companywide layoffs three years ago were phased in over five months. Consistent with Amazon’s annual planning, it started in the fall, continued in January, after the holiday shopping season, and again in March.
Reports had previously emerged that Amazon could lay off around 30,000 people. Layoffs of this scale will exceed ongoing layoffs in late 2022 and early 2023 as Jassy aims to cut costs after a pandemic-induced boom, affecting more than 27,000 company employees, the report said.
As of June 30, Amazon employed about 1.55 million people, most of whom worked in warehouses. The corporate workforce consists of approximately 350,000 personnel; That means the current 14,000 layoffs announced Tuesday represent about 4% of that headcount.
Jassy has consistently emphasized Amazon’s commitment to reducing roles and easing red tape at rising management levels in the wake of the pandemic-driven hiring spree. His June statements about using artificial intelligence to automate more processes sparked concern among employees already upset by ongoing management disruptions, the report said.
Signs of cost cutting soon emerged within the company. Amazon implemented more aggressive attrition targets over the summer and avoided filling open positions in its corporate logistics and advertising departments, people familiar with the development told Bloomberg.
(With input from institutions.)
