Amazon has announced that it will eliminate approximately 14,000 positions just weeks before the busy holiday season, citing artificial intelligence as a key factor in its decision. The company says these reductions are part of a broader effort to streamline operations and focus resources on strategic priorities.
What’s Happening?
Beth Galetti, Amazon’s Senior Vice President of People Experience and Technology, shared the news in a memo to employees. She wrote, “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 in existing market segments and altogether new ones.”
The layoffs, which the company describes as a “corporate workforce” reduction, are among the largest Amazon has undertaken in recent years. While earlier reports suggested the cuts could reach 30,000 roles, the confirmed number is 14,000. Amazon employs more than 1.5 million people worldwide, making this a significant but targeted adjustment.
Why Amazon Is Cutting Jobs
Galetti emphasized that the layoffs are part of CEO Andy Jassy’s ongoing strategy to strengthen Amazon’s teams. In previous years, this included a return-to-office mandate; now, it focuses on streamlining decision-making and increasing efficiency.
By investing in AI and technology, Amazon aims to remove layers and bureaucracy while reallocating resources to areas it considers its “biggest bets” and most critical for customers. These changes are designed to help the company innovate faster and remain competitive in a rapidly evolving market.
Could More Cuts Be Coming?
While the 14,000 layoffs are significant, the company indicated that this may not be the last round of adjustments. The memo mentioned that Amazon plans to continue hiring in strategic areas in 2026 while seeking additional opportunities to optimize its organizational structure.
Impact on Amazon’s Stock
Historically, investors often view layoffs as a cost-cutting measure that can boost a company’s bottom line. However, Amazon’s stock (Nasdaq: AMZN) remained relatively flat in premarket trading after the announcement. Year-to-date, the stock has risen only modestly compared to broader market gains. Amazon is expected to release its third-quarter 2025 financial results today, October 30.
Key Takeaways
- Amazon plans to cut approximately 14,000 positions, described as a “corporate workforce” reduction.
- Artificial intelligence is a key driver behind the restructuring, emphasizing efficiency and innovation.
- CEO Andy Jassy’s strategy focuses on removing layers, reducing bureaucracy, and reallocating resources to Amazon’s “biggest bets.”
- Hiring will continue in certain areas in 2026 despite the current reductions.
- The market response has been muted, with Amazon’s stock remaining relatively flat after the announcement.
Final Thoughts
Amazon’s announcement underscores the transformative impact of AI on the modern workplace. As Galetti said, “The world is changing quickly,” and companies are rethinking how to structure teams to innovate efficiently. While these layoffs are challenging for those affected, they reflect a larger trend of technology-driven change across industries.
This Halloween, the news may feel more like a trick than a treat, but it also highlights how organizations are adapting to a rapidly changing technological landscape just before the holiday season.
