Here's Why Amazon Says It's Cutting 14,000 Workers While It's 'Performing Well'

Core Insights - Amazon plans to cut approximately 14,000 jobs from its white-collar workforce, marking a significant move among large U.S. companies despite strong business performance [2][4][6] Group 1: Job Cuts and Corporate Strategy - The layoffs are described as Amazon's largest corporate job cuts to date, aimed at streamlining operations and reallocating resources towards artificial intelligence and other growth priorities [4][7] - Amazon's Senior Vice President of People Experience and Technology, Beth Galleti, stated that the company needs to be organized more leanly with fewer layers to enhance agility and ownership [3][6] - The company is expected to report growing revenue and profits in its upcoming third-quarter results, indicating a paradox of job cuts amid strong financial performance [2][4] Group 2: Industry Trends - The job cuts at Amazon reflect a broader trend in the tech industry, where companies like Oracle, Microsoft, and Alphabet are also reducing white-collar positions to fund AI investments [9] - Analysts suggest that the tech giants' plans to invest hundreds of billions in artificial intelligence infrastructure are driving the need to lower headcounts [9] - Other companies, such as UPS and Chegg, have also announced significant job cuts, indicating a wider restructuring trend across various sectors [10][11]