Amazon is cutting 14,000 jobs in its corporate offices in 2025 as part of a major reorganization designed to make the company more efficient and better prepared for the future of AI. Most of the affected workers will have 90 days to find new jobs within the company, while others will get severance pay and other benefits.
Beth Galetti, the Senior Vice President of People Experience, said the company is moving toward a more streamlined and efficient structure.
“We need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business,” she explained. These job cuts affect about 5% of Amazon’s 350,000 corporate workers.
Amazon’s CEO, Andy Jassy, has said AI is at the heart of the company’s transformation.
He believes that the efficiencies gained from using Generative AI and AI assistants will change the way work is done, eliminating some jobs while creating new ones. Amazon plans to continue hiring in key areas and will give priority to former employees for these new roles.
This comes after 27,000 layoffs in 2023, driven by economic challenges and the company’s effort to operate like a fast-moving startup.
Experts say this trend shows a larger shift in the workforce, with more companies moving away from relying on human workers and toward building strong technological systems as AI becomes more widespread.