Amazon Slashes 14,000 Corporate Jobs in Major Layoffs
▼ Summary
– Amazon is cutting 14,000 corporate jobs to reduce bureaucracy and invest more in its AI strategy.
– This is Amazon’s second-largest layoff, following 22,000 job cuts in 2022, affecting its corporate division of over 360,000 employees.
– The company views AI as transformative and aims to organize more leanly to innovate and move quickly for customers.
– Amazon is heavily investing in tech infrastructure, spending $55.6 billion in the first half of the year primarily to support AWS growth.
– Affected employees have 90 days to find internal roles, with severance and benefits offered to those who cannot move within the company.
Amazon has confirmed a significant workforce reduction, announcing plans to eliminate 14,000 corporate positions as part of a strategic push to streamline operations and redirect investments toward its artificial intelligence initiatives. This move represents the company’s second-largest round of layoffs, following the 22,000 job cuts implemented in 2022. As of late October 2024, Amazon employed close to 1.2 million people globally, with over 360,000 of those roles based in corporate functions spanning administration, sales, and executive leadership.
In a company-wide memo, Beth Galetti, Senior Vice President of People Experience and Technology, explained that the restructuring aims to strengthen Amazon by reallocating resources toward its most promising ventures. She recognized that the timing might raise questions, especially given the firm’s solid performance, but emphasized that rapid changes in the business environment require a leaner organizational structure. Galetti described AI as the most significant technological shift since the internet, one that demands greater agility and speed from the company.
Amazon is channeling substantial capital into technology infrastructure, particularly to expand computing capacity for AI services. During the first half of its current fiscal year, the company invested $55.6 billion, much of it directed toward supporting the expansion of Amazon Web Services. This focus on infrastructure comes as AWS contributed 18% to the firm’s total net sales, which reached $167.7 billion in the second quarter, a 13% increase compared to the same period last year.
Earlier internal communications from CEO Andy Jassy highlighted that the growing use of generative AI and automated agents will reshape workforce needs. He noted that while certain roles may diminish, new types of jobs will emerge. Over the next several years, Jassy expects overall corporate headcount to decline as AI-driven efficiencies take hold across the organization.
Recent reports indicated that Amazon was considering cutting as many as 30,000 jobs across departments such as human resources, devices and services, and operations. The company has also executed smaller workforce adjustments in other units, including Communications and Sustainability, earlier this year.
For employees affected by the latest layoffs, Amazon is providing a 90-day internal job search period, during which recruiters will give priority to internal applicants. Those unable to secure another role within the company will receive severance packages, outplacement support, continued health benefits, and additional transitional assistance.
Looking ahead, Galetti confirmed that Amazon will persist in removing management layers and pursuing operational efficiencies throughout 2026, even as it continues hiring in strategic, high-priority areas.
(Source: TechCrunch)
