Amazon says it will cut 14,000 jobs as part of a shift toward using AI more.
IT giant wants to work more effectively and prepare for long-term growth in an industry that is becoming more automated.
Seattle, WA – October 2025: Amazon has stated that it will lay off some 14,000 corporate workers this year as part of a significant restructuring effort to get the corporation ready for the quick use of artificial intelligence (AI) technologies. The decision shows that the IT giant wants to work more effectively and prepare for long-term growth in an industry that is becoming more automated.
Beth Galetti, Amazon’s Senior Vice President of People Experience, told staff about the decision in a memo that was eventually made public on the company’s site. She said that Amazon needs to “find more places where we can remove layers, give people more responsibility, and make things more efficient” even though it is still investing in important strategic areas. The corporation will put rehiring affected workers for new jobs in new business divisions at the top of its list of things to do.
The official amount of cutbacks is 14,000, but Reuters said earlier this week that the overall number of cuts might go up to 30,000. The layoffs are set to start on Tuesday, and most of the affected workers will have 90 days to look for other jobs within the company. People who can’t find new jobs will get severance compensation and help with the transfer.
More efficient operations for a faster future
Galetti said that the restructuring fits with CEO Andy Jassy’s plan to run Amazon “like the world’s biggest startup.” She stressed that the change is necessary since AI is changing the way technology works around the world. Galetti said, “This generation of AI is the most important technology we’ve seen since the Internet.” “We’re sure that we need to be more organized, with fewer layers and more ownership, so that we can move as quickly as possible for our customers and our business.”
Amazon has over 1.5 million employees around the world, and 350,000 of them work in corporate offices. The announced cuts will affect about 4% of its corporate staff.
Getting Ready for the AI Revolution
Jassy has been honest about how AI will affect the workforce in the long run. He wrote in a blog post in June that some jobs will have to go away as the company kept releasing generative AI tools and digital agents. Jassy said, “We will need fewer people to do some of the jobs that are being done now and more people to do other kinds of jobs.” He went on to say that AI will not just change how Amazon does business, but also how people and enterprises throughout the world work. Jassy cautioned, “A lot of these agents haven’t been built yet, but don’t worry—they’re coming, and they’re coming fast.”
A Continued Push to Make Things Easier
This is the second time in the past several years that Amazon has had to lay off a lot of people. The corporation cut 27,000 jobs in 2023 in departments like Human Resources, Amazon Stores, and Amazon Web Services (AWS) since the global economy was tough. Experts in the field see the most recent changes as part of Amazon’s continual attempt to find a balance between innovation and efficiency.
Neil Saunders, Managing Director of GlobalData, said that the move shows a change in strategy. He stated, “Markets around the world are getting tighter even as costs go up.” “Amazon is not immune to this, and these layoffs show that the company is moving away from people and toward technology.”
The bigger picture and the economy
The news comes at a time when the U.S. job market is becoming more and more unstable, especially in the IT industry. As businesses rush to use generative AI, many are still worried that automation could take jobs away from a lot of people. But experts say that a lot of this prediction is too early, because there isn’t enough current research to show that AI will completely take over human jobs in the near future.
The entire effects of Amazon’s restructuring are still unknown, but the business says it will help employees who are harmed and keep things stable in the long run. Galetti stated, “We’re doing everything we can to help everyone whose job is affected.” He also noted that the company’s key goal is to stay flexible and focused on customers as it goes through the next wave of technological change.
