Amazon announced Tuesday it will eliminate 14,000 corporate positions worldwide, marking one of its largest workforce reductions ever.
The company expects additional cuts in 2026.
AI and Efficiency Drive
The move addresses over-hiring during the pandemic and prepares for the crucial holiday shopping period.
CEO Andy Jassy has pushed AI tools to streamline operations and reduce bureaucracy.
Scale of the Cuts
Amazon employs 1.56 million people globally, including 350,000 in corporate roles. This is the deepest reduction since 27,000 jobs were cut in late 2022 and early 2023.
Employee Notification
Workers learned via early morning emails to personal accounts:
“Your role is being eliminated. Employment ends after a non-working period.”
Beth Galetti, Senior VP of People Experience and Technology
Support for Displaced Staff
Amazon offers:
- 90 days to apply for internal roles
- Priority placement
- Video calls with HR for guidance
The company says it will continue hiring in key growth areas.
Jassy’s Bureaucracy Fight
The CEO launched an anonymous feedback portal that received over 1,500 suggestions, leading to 450 process improvements. His goal: fewer managers, faster decisions.
Affected Divisions
Cuts hit multiple units:
- Devices (Echo, Kindle)
- Advertising
- Prime Video
- Human Resources
- Operations
- Alexa
- Amazon Web Services (AWS)
The full scope remains unclear, but reductions are widespread.
AI’s Role in Transformation
Jassy warned in June that AI agents would replace routine corporate tasks.
“This generation of AI is the most transformative technology since the internet.”
Amazon is investing $118 billion this year mostly in AI infrastructure and cloud.
Ongoing Restructuring
Over two years, Amazon has made smaller, targeted cuts in areas like:
- Books
- Devices
- Wondery (podcasts)
Galetti says these changes have sped up team performance.
Stock Market Reaction
Shares rose 0.8% Tuesday midday. Despite gains, Amazon trails the “Magnificent 7” tech giants with only a 3.5% yearly increase.
Broader AI Trend
Companies worldwide adopt AI to:
- Write code
- Handle customer service
- Manage logistics
This reduces reliance on human labor in repetitive roles.
Political and Social Backlash
U.S. lawmakers raised concerns:
- High use of H-1B visas while cutting American jobs
- Automation’s long-term impact estimates suggest 500,000 warehouse jobs could vanish via robots
Critics demand accountability from founder Jeff Bezos.
Holiday Season Strategy
With Black Friday and Christmas approaching, Amazon aims to:
- Control costs
- Boost margins
- Invest in AI-driven efficiency
Q3 earnings, due Thursday, will reveal financial health.
Future of Work at Amazon
The company balances:
- Aggressive AI adoption
- Selective hiring in engineering, cloud, logistics
- Leaner corporate structure
Industry Ripple Effects
Amazon’s moves signal a broader shift:
- Tech giants prioritizing profit over headcount
- AI reshaping white-collar jobs
- New skills needed for future roles
Employee Sentiment
Many affected workers expressed shock. Some praised the internal job search period, others worry about limited openings.
Looking to 2026
Amazon says reductions will continue but at a measured pace. It plans to:
- Expand AI services
- Grow cloud dominance
- Compete in e-commerce
Final Word
Amazon is reinventing itself, leaner, smarter, AI-powered. But at what human cost?
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