Amazon Cuts 14,000 Jobs as AI Automation Reshapes Tech Giant’s Workforce
TLDR
- Amazon confirms 14,000 corporate job cuts from its 350,000-person corporate workforce
- Layoffs come as company invests heavily in AI automation and cost reduction efforts
- CEO Andy Jassy warned in June that AI adoption would reduce workforce needs
- Company made approximately 27,000 job cuts in 2022 during previous restructuring
- Cuts affect books, devices, services, and podcast divisions across Amazon
Amazon confirmed Tuesday it will eliminate 14,000 corporate positions as the e-commerce giant restructures its operations. The cuts affect roughly 4% of the company’s corporate staff.
The tech company employs about 350,000 corporate workers from a total workforce of 1.56 million employees. Most Amazon workers are in warehouse and logistics roles rather than office positions.
Amazon.com, Inc., AMZN
Initial reports Monday suggested Amazon would cut up to 30,000 jobs. Reuters first broke the story citing sources familiar with the plans. However, Amazon later confirmed the lower figure of 14,000 layoffs.
Cost Cutting and AI Investment Drive Changes
CEO Andy Jassy has prioritized reducing expenses while funding artificial intelligence projects. He stated in June that growing AI adoption would decrease corporate staffing needs over coming years.
The company is implementing AI tools to automate tasks previously handled by human workers. These systems can write software code and manage routine administrative work.
Amazon joins other tech companies using automation to reduce labor costs. The shift reflects broader industry trends toward AI-powered efficiency improvements.
Multiple Divisions Face Job Losses
Amazon has been cutting positions across several business units in recent months. The books division, devices and services unit, and Wondery podcast division have all seen workforce reductions.
These changes follow pandemic-era hiring increases. Amazon added large numbers of employees during COVID-19 to handle surging online shopping demand.
The company now faces adjusting workforce size to match current business needs. Jassy has focused on streamlining operations and eliminating unnecessary management layers.
This represents Amazon’s largest workforce reduction since 2022. The company eliminated approximately 27,000 positions during that restructuring period.
Amazon did not specify which geographic locations would see the most cuts. The company also declined to provide a completion timeline for the layoffs.
Jassy explained that AI would transform job requirements at Amazon. Some current roles will disappear while new positions emerge. The company expects to need fewer workers for certain tasks.
Tech firms are increasingly adopting AI agents to handle work once requiring human employees. This acceleration comes as AI capabilities have expanded rapidly.
Amazon submitted data to US regulators last year showing 350,000 corporate employees. The new cuts will reduce that number by 14,000 positions.
The layoffs represent a small percentage of Amazon’s overall employee base. Warehouse and delivery workers make up the vast majority of the company’s staff.
Companies across the technology sector are balancing AI investment with workforce optimization. Amazon’s approach reflects this industry-wide pattern of automation-driven restructuring.
The 14,000 job cuts will affect employees in executive, managerial, and sales positions. Amazon has been reorganizing these functions to reduce operational complexity.
The post Amazon Cuts 14,000 Jobs as AI Automation Reshapes Tech Giant’s Workforce appeared first on Blockonomi.
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