Amazon has cut 14,000 corporate jobs, its largest workforce reduction since 2022, as part of a sweeping effort to streamline operations, eliminate bureaucracy, and accelerate the adoption of AI across its corporate structure.
The cuts, initially reported by Reuters as being up to 30,000, affect roughly five percent of the company’s 350,000 corporate employees across several departments, including human resources, operations, devices, services, and Amazon Web Services (AWS).
While the layoffs represent a small fraction of Amazon’s 1.55 million global workforce, the move underscores the industry-wide transition where AI-powered automation is beginning to reshape the architecture of modern corporate life, as signalled earlier this year by similar AI-prompted lay-offs from Microsoft earlier this summer.
Beth Galetti, an executive at Amazon, confirmed the news to workers in a memo on Tuesday this week:
“The reductions we’re sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets and what matters most to our customers’ current and future needs."
Galetti did not confirm what roles are being cut or where they are based, however. Most workers have been given 90 days to find a new job internally.
An Amazon spokesperson, Kelly Nantel, told The Verge that "AI is not the reason behind the vast majority of reductions."
“Last year, we set out to strengthen our culture and teams by reducing layers, increasing ownership, and helping reduce bureaucracy to drive speed and ownership, and be set up to invent, collaborate, be connected, and deliver the absolute best for customers," Nantel continued. "This effort has begun to pay off, and we’re seeing strong results for our teams and customers. The reductions we’re sharing today are a continuation of this work."
Galetti’s memo added that the business expects to maintain its hiring in "key strategic areas” in 2026. However, it will also continue to analyse areas to “realise efficiency gains.” More layoffs may be in store in the future.
The AI Efficiency Equation
Under CEO Andy Jassy, Amazon has moved aggressively to cut costs and flatten management structures, citing “an excess of bureaucracy.” The company has implemented AI to automate routine and administrative functions, and in doing so, appears to have found efficiencies substantial enough to justify a significant reduction in human staff.
