Amazon plans to cut 14,000 corporate jobs globally, with more layoffs expected in 2026. Move linked to AI adoption and efforts to reduce post-pandemic overstaffing
Amazon has announced plans to slash about 14,000 corporate positions worldwide, marking one of its largest workforce reductions in recent years. The layoffs come as the company embraces artificial intelligence (AI) to automate more roles and manage costs ahead of the holiday season.
The move is part of a broader strategy by Amazon CEO Andy Jassy, who has repeatedly emphasised the need to streamline operations and eliminate excess bureaucracy.
“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,” said Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology.
Employees told Reuters that they learned of their job terminations through emails sent early Tuesday morning, notifying them that they were no longer required to work on Amazon’s behalf.
“Unfortunately, your role is being eliminated and your employment will end after a non-working period,” Galetti wrote in the email.
Affected workers will have 90 days to apply for new positions within Amazon, with recruitment teams instructed to prioritise their applications.
The job cuts span multiple departments, including devices, advertising, Prime Video, Alexa, human resources, operations, and Amazon Web Services (AWS).
While Amazon has not specified the full scope or duration of the layoffs, sources indicate that some divisions will continue hiring even as others face reductions heading into 2026.
This round of cuts is the deepest since 27,000 positions were eliminated between late 2022 and early 2023.
Amazon’s current restructuring aims to offset over-hiring during the pandemic while adapting to new technological efficiencies brought by AI.
The company is projected to invest $118 billion this year, with much of it directed toward expanding its AI and cloud infrastructure.
CEO Jassy has also opened an anonymous employee feedback channel to identify inefficiencies—receiving over 1,500 suggestions that have already led to 450 process changes.
The layoffs have drawn political scrutiny. U.S. Senator Bernie Sanders criticised Amazon founder Jeff Bezos, citing reports that automation could eventually cost up to 500,000 warehouse jobs.
Meanwhile, two other U.S. senators have questioned why Amazon remains the largest U.S. employer of foreign workers on H-1B visas while simultaneously reducing domestic jobs.
Despite the turbulence, Amazon’s stock rose 0.8% on Tuesday but remains the worst performer among the so-called “Magnificent 7” tech giants this year, up just 3.5% overall.
As Amazon doubles down on AI and automation, analysts say the company’s restructuring signals a turning point in corporate employment across the tech sector.
The full impact of these layoffs—and how deeply AI will reshape Amazon’s global operations—will become clearer in the coming quarters, especially as the company prepares to announce its third-quarter earnings on Thursday.
