Amazon Cuts 14,000 Corporate Roles as AI, Cost Focus Reshape Workforce

Core Viewpoint - Amazon is planning to cut approximately 14,000 corporate jobs, representing 4% of its 350,000 corporate staff, as part of a broader effort to reduce expenses and streamline operations [1][5]. Group 1: Job Cuts and Workforce Impact - The company announced the job cuts in a post to employees, indicating that most affected employees will have 90 days to seek new roles internally [2]. - The layoffs are part of a two-year initiative to cut costs and address overhiring that occurred during the COVID-19 pandemic [5]. - This reduction would mark the largest job cuts in Amazon's corporate history, surpassing the previous cuts of approximately 27,000 positions from late 2022 to early 2023 [6]. Group 2: Strategic Focus and Future Hiring - Despite the layoffs, Amazon plans to continue hiring in key strategic areas while also seeking to improve efficiency and reduce organizational layers [3]. - CEO Andy Jassy has emphasized the importance of cost-cutting and has indicated that efficiency gains from AI could lead to further reductions in corporate staff [7]. Group 3: Broader Context and Industry Implications - A report from Reuters initially suggested a higher figure of 30,000 job cuts, highlighting the scale of the layoffs across nearly all business units [4]. - The total workforce of Amazon, including its supply chain network, was reported to be 1.5 million full-time and part-time employees as of December 31, 2024 [4].