Amazon is cutting 14,000 corporate jobs as the nation’s second-largest retailer bets on artificial intelligence to replace human labor.
The job cuts announced Tuesday are the first in a wave that could affect 30,000 corporate jobs — the largest layoffs in the history of Jeff Bezos’ company, according to Jeff Bezos. Reuters and The Wall Street Journal.
Beth Galetti, senior vice president of people and technology, explained the company’s decision in a letter to employees, calling AI “the most transformative technology since the Internet.” He said the emphasis is on people taking more ownership of the work and fewer layers in the hierarchy.
“The reductions we’re sharing today are a continuation of this work to get stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we invest in the biggest bets and what matters to our customers’ current and future needs,” Galetti said in the letter.
It is not yet clear what the impact will be on Amazon’s 75,000 UK workforce, but reports in Reuters and WSJ Global offering segments, including human resources, operations, devices and services, and Amazon Web Services, are expected to be affected.
In late July, Amazon said its operating income rose to $19.2 billion from $14.7 billion last year, which Galetti cited in the letter.
“Some may ask why we are cutting roles when the company is doing well. Across our business, every day we deliver great customer experiences, innovate at a rapid pace and generate strong business results. What we need to remember is that the world is changing rapidly,” Galetti said.
Intelligence analyst Amanda Goodall criticized the tone of Galetti’s letter, which was titled “Staying beautiful and continuing to strengthen our organizations.”
“Doncha just love these words they come up with so they don’t feel bad?” Pit said in a post on X.
The cuts will affect roughly one-tenth of the company’s roughly 350,000 workforce. In total, Amazon employs more than 1.5 million staff, the majority of whom are in warehouse roles worldwide.
CEO Andy Jassey has previously warned employees that some roles at the company could be replaced by artificial intelligence.
“As we introduce AI and more agents, it should change the way we do our work,” Jassi said in June. “We will need fewer people doing some of the jobs that are done today, and more people doing other types of jobs.”
Amazon has been cutting roles across the business in recent years, with cuts affecting areas such as devices, communications and podcasts.
Artificial intelligence is already replacing thousands of jobs every month as the US labor market struggles amid global trade uncertainty, according to a report released in August.
Supplementary reports by agencies
