Amazon confirms 14,000 job cuts amid AI push, more layoffs likely - here's what we know

Amazon.com Inc on Tuesday confirmed plans to cut nearly 14,000 corporate jobs, just months after Chief Executive Officer Andy Jassy warned that AI would reduce the company’s workforce.

In June, Jassy hinted the e-commerce giant's workforce would likely reduce amid its increasing use of artificial intelligence to finish work usually done by human beings.

“The reductions we’re sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets,” Beth Galetti, senior vice president of people experience and technology at Amazon, said in a blog post on Tuesday.

The layoffs are affecting a wide range of departments, including logistics, payments, video games, and the cloud-computing division, Bloomberg reported, citing people aware of the matter.

More layoffs ahead

Galetti hinted at further job reductions, mentioning Amazon's intention to hire in key areas in 2026.

Speaking on the reason for job cuts, she said, “Some may ask why we’re reducing roles when the company is performing well. What we need to remember is that the world is changing quickly. 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.”

She added, “Looking ahead to 2026, as Andy talked about earlier this year, we expect to continue hiring in key strategic areas while also finding additional places we can remove layers, increase ownership, and realise efficiency gains."

How did Amazon employees react?

Following Amazon's announcement of 14,000 job cuts on Tuesday, employees started congregating in social media chat rooms. They discussed which departments were affected and shared information about the messages employees might receive indicating impending layoffs. They also exchanged advice on retrieving personal files from work computers before access was cut off and sought tips on companies currently hiring, the news portal reported.

About Amazon layoffs

The last round of companywide layoffs three years ago occurred gradually over five months. It started in the fall, following Amazon’s annual planning, then continued in January, after the holiday shopping season and again in March.

Earlier, reports emerged that Amazon may cut nearly 30,000 jobs. Terminations on that scale would exceed the rolling layoffs in late 2022 and early 2023, which affected over 27,000 corporate employees as Jassy aimed to cut costs following a pandemic-driven boom, the report said.

As of 30 June, Amazon employed about 1.55 million people, most of whom worked in warehouses. The corporate workforce comprises about 3,50,000 personnel, which means the current 14,000 job cuts announced Tuesday represent about 4% of that headcount.

Jassy consistently highlighted his commitment to cutting roles at management levels and easing bureaucracy, which had increased following Amazon's pandemic-driven hiring spree. His June remarks about leveraging AI to automate more processes sparked concern among employees, who are already troubled by ongoing management reductions, the report said.

Signs of cost-cutting within the company appeared shortly thereafter. Over the summer, Amazon implemented more aggressive attrition goals and refrained from filling open roles in its corporate logistics and advertising departments, people aware of the development told Bloomberg.

(With inputs from agencies)