Amazon confirms 14,000 job losses in corporate division

Amazon has unveiled plans to significantly reduce its global corporate workforce, cutting approximately 14,000 jobs as part of a strategic shift to streamline operations and capitalize on the transformative potential of artificial intelligence (AI). The announcement, made on Tuesday, underscores the tech giant’s commitment to reallocating resources toward its most promising initiatives and customer-centric innovations. Beth Galetti, Amazon’s Senior Vice President, emphasized in a company-wide memo that the restructuring would position Amazon ‘even stronger’ by focusing on ‘what matters most to our customers’ current and future needs.’ Galetti acknowledged the move might raise questions, particularly given Amazon’s robust performance, but she highlighted AI as ‘the most transformative technology since the Internet,’ enabling unprecedented innovation. The company has pledged to support affected employees by assisting them in finding new roles within Amazon or providing transition support, including severance packages. This decision follows Amazon’s aggressive hiring during the COVID-19 pandemic, which saw a surge in demand for online services. CEO Andy Jassy has since prioritized cost-cutting measures, investing heavily in AI tools to enhance efficiency. In June, Jassy predicted that AI advancements would lead to job cuts as machines increasingly handle routine tasks, necessitating a shift in workforce roles. Amazon, which employs over 1.5 million people globally, including 350,000 corporate staff, remains a dominant force in the tech industry as it navigates this pivotal transition.