Amazon has officially announced plans to reduce its corporate workforce by approximately 14,000 employees, addressing widespread speculation about large-scale layoffs. The decision, communicated by Beth Galetti, Senior Vice-President of People Experience and Technology, underscores the company’s strategic shift to streamline operations and reallocate resources toward its most critical growth areas. Galetti emphasized that the move aims to reduce bureaucracy, eliminate redundant layers, and focus on initiatives that align with customer needs and future demands. Affected employees will have 90 days to seek internal roles, with Amazon prioritizing internal recruitment to facilitate transitions. Those unable to secure new positions will receive severance packages, outplacement services, and continued health insurance benefits. Galetti attributed the restructuring to the rapid evolution of artificial intelligence (AI), which she described as the most transformative technology since the internet. She noted that AI’s integration necessitates a leaner organizational structure to enhance agility and efficiency. Amazon CEO Andy Jassy previously highlighted the profound impact of generative AI on the workforce, predicting a reduction in corporate roles as the company leverages AI for operational gains. Jassy urged employees to embrace AI, experiment with its applications, and contribute to Amazon’s reinvention. The company plans to continue hiring in strategic areas while identifying opportunities to increase ownership and efficiency. This announcement reflects Amazon’s commitment to adapting to technological advancements and maintaining its competitive edge in a rapidly evolving market.