​Amazon confirms mass corporate job cuts as AI takes hold

It was earlier reported that 30,000 employees could be let go as part of cost-cutting measures and over-hiring during the pandemic, but the figure confirmed is now 14,000.

None of the reports confirmed which functions or where in the world the cuts will be made.

The figure of 14,000 is a small proportion of Amazon’s overall global workforce, but it represents 4% of its 350,000 corporate employees covering the likes of executive, managerial and sales roles.

In a note written to staff, Amazon senior vice president Beth Galetti wrote: “Some may ask why we’re reducing roles when the company is performing well. Across our businesses, we’re delivering great customer experiences every day, innovating at a rapid rate, and producing strong business results. What we need to remember is that the world is changing quickly.

“This generation of AI is the most transformative technology we’ve seen since the internet, and it’s enabling companies to innovate much faster than ever before in existing market segments and altogether new ones.

“We’re convinced that we need to be organised more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.”

In 2022, Amazon made a large round of job cuts as 27,000 workers were let go over the course of several months.

People close to the matter told Reuters that managers of affected teams were asked to take part in training on Monday on how to communicate with impacted staff.

Amazon chief executive Andy Jassy has previously said the company will reduce spending and invest in AI to boost efficiency. He said in June that the increase in AI use will likely lead to job cuts.