Amazon has announced plans to cut around 14,000 corporate jobs worldwide as it seeks to become “more leanly organised” to capitalise on artificial intelligence (AI). The move marks one of the company’s largest workforce reductions since the pandemic hiring boom.
Beth Galetti, Amazon’s senior vice president, told staff the restructuring would make the company “even stronger” and allow greater investment in areas that matter most to customers. She said AI was “the most transformative technology since the Internet,” allowing businesses to innovate faster than ever.
Amazon’s decision comes despite strong financial results. The firm reported a 13% rise in sales to $167.7bn (£125bn) in the second quarter, surpassing Wall Street expectations. However, executives said adapting to the rapid growth of AI required fewer management layers and more agility.
The company pledged to support those affected, helping employees find new positions within Amazon or offering severance packages.
Amazon employs more than 1.5 million people globally, including around 350,000 in corporate roles. The company had already reduced about 27,000 positions in previous rounds of cuts during 2022.
Chief executive Andy Jassy has warned previously that AI will change the nature of work, saying fewer people will be needed for some tasks. Analysts suggest the cuts are part of a wider industry trend as tech giants refocus on efficiency and profitability amid slower growth.
Amazon will report its latest financial results on Thursday, with investors closely watching how its AI strategy unfolds.
