Amazon laying off about 14,000 corporate workers as it invests more in AI

In a significant move to enhance efficiency, Amazon announced plans to reduce its corporate workforce by approximately 14,000 employees. This decision is part of a broader strategy aimed at cutting costs as the company pivots towards investments in transformative technologies such as generative artificial intelligence. Beth Galetti, Amazon's senior vice president of people experience and technology, emphasized the importance of this shift. She noted that the current wave of AI represents one of the most groundbreaking advancements since the inception of the Internet, enabling faster innovation across various sectors. Galetti stated, "We believe that to serve our customers and businesses effectively, we must operate with fewer layers of management and greater accountability." This round of layoffs is poised to become one of the largest in Amazon's history, with reports suggesting that the total number of affected employees could reach as high as 30,000. Despite these reductions, Amazon has indicated its commitment to hiring in specific strategic areas, signaling that the company is not halting its growth trajectory. CEO Andy Jassy highlighted that the embrace of generative AI will necessitate a workforce restructuring. He informed employees that some current roles may become redundant, while new positions will emerge to meet evolving business needs. As Amazon continues to navigate this transitional phase, the focus remains on leveraging AI to better serve its customers and maintain a competitive edge.