Amazon Cuts Jobs to Boost AI Innovation

Published Date : 29/10/2025 

Amazon is slashing 14,000 corporate jobs as it ramps up investments in artificial intelligence, aiming to stay competitive in the rapidly evolving tech landscape. 

Amazon plans to cut approximately 14,000 corporate jobs as the e-commerce giant intensifies its efforts to advance artificial intelligence (AI). The company's leadership aims to streamline operations and move more swiftly in the competitive tech industry.

In a memo to employees, Beth Galetti, Amazon’s senior vice president of people experience and technology, highlighted the transformative potential of AI. “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,” Galetti wrote. The memo, posted online, did not specify the locations of the affected employees.

Amazon, headquartered in Seattle, has a global workforce that includes workers in the Los Angeles area. The company has not provided details on whether California employees are part of the cuts. As of Tuesday morning, the California Employment Development Department had not received layoff notices related to Amazon's latest cuts. On LinkedIn, Amazon employees who have been laid off include recruiters, engineers, and managers from various states.

These layoffs are part of a broader trend in the tech industry, where major companies are reorganizing their workforces and cutting costs to invest heavily in AI. Last week, Meta announced it was cutting 600 jobs in its AI division as part of a strategy to eliminate layers and move more quickly. The popularity of OpenAI’s ChatGPT, a chatbot capable of generating text, images, and code, has spurred big tech companies like Google, Microsoft, Amazon, and Meta to compete with smaller startups that are rapidly releasing new AI features.

The rise of generative AI has the potential to disrupt various industries, including online shopping. Tech companies are investing heavily in recruiting top AI researchers, building new data centers, and developing AI-powered agents and robots. However, this surge in AI has also raised concerns among workers about job automation.

In June, Amazon’s CEO, Andy Jassy, predicted that the e-commerce giant would shrink its workforce as employees leverage AI for efficiency gains. The job cut announcement followed a Reuters report suggesting that Amazon might target up to 30,000 job cuts, raising questions about the possibility of more layoffs.

Uncertainty surrounding the cost of tariffs has made retailers more cautious about spending. Earlier this year, Amazon clashed with the Trump administration over the idea of displaying tariff costs but ultimately did not proceed with the plan.

Neil Saunders, managing director of GlobalData, stated that the layoffs represent a significant restructuring of Amazon’s corporate workforce. “Unlike the Target layoffs, Amazon is operating from a position of strength. The company has been producing good growth and has a lot of headroom for further expansion in both the U.S. and overseas,” he said.

Despite the job cuts, Amazon remains committed to significant AI investments. The company plans to invest $10 billion in North Carolina to expand cloud computing infrastructure and advance AI. Additionally, Amazon has committed to investing $10 billion each in data center projects in Mississippi, Indiana, and Ohio.

Galetti noted in Tuesday’s memo that most employees who will lose their jobs have 90 days to look for internal roles, and recruiters will prioritize these candidates. Despite the cuts, Amazon’s jobs website shows that the company is currently hiring for over 100 roles in California, including senior product managers, engineers, and other positions.

Amazon has about 350,000 corporate employees, and the cuts represent a 4% reduction in its corporate workforce. The company is scheduled to report quarterly results on Thursday, and its share price jumped more than 1% following the announcement of the layoffs. 

Frequently Asked Questions (FAQS): 

Q: Why is Amazon cutting jobs?

A: Amazon is cutting jobs to streamline operations and move more quickly in the competitive tech industry, particularly as it ramps up investments in artificial intelligence (AI).

Q: How many jobs is Amazon cutting?

A: Amazon plans to cut approximately 14,000 corporate jobs.

Q: What is Amazon's strategy with AI?

A: Amazon's strategy with AI involves significant investments in recruiting top researchers, building new data centers, and developing AI-powered agents and robots to stay competitive in the tech landscape.

Q: Where will the affected employees be located?

A: The memo from Amazon did not specify the locations of the affected employees, but the company has a global workforce, including workers in the Los Angeles area.

Q: How is Amazon's workforce expected to change with AI advancements?

A: Amazon's CEO, Andy Jassy, expects the company to shrink its workforce as employees gain efficiency from using AI extensively, leading to potential job automation and restructuring. 

More Related Topics :