Amazon is preparing to cut about 14,000 corporate roles as it continues to reshape how it works internally and adjusts to new technology. A note shared with staff on Tuesday by Beth Galetti, Senior Vice President of People Experience and Technology said that the decision comes due to the company’s plans to “get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we’re investing in our biggest bets and what matters most to our customers’ current and future needs.”
Reuters reported that the total number could rise to as many as 30,000 roles as the company cuts costs and compensates for what it described as overhiring during the pandemic. This would make this Amazon’s largest round of corporate job cuts since 2022, when it eliminated around 27,000 positions. The cuts will represent nearly 10% of its 350,000 corporate workers but only a small portion of its 1.55 million total staff.
The job reductions are expected to affect divisions such as human resources, operations, devices and services, and Amazon Web Services. Managers of affected teams received training on Monday on how to handle conversations with staff as email notifications began rolling out on Tuesday morning.
What Does The Company Say Is Behind The Decision?
In her note, Galetti told employees that these organisational changes build on Amazon’s work over the past year to simplify management structures and speed up decision making. She said the company wants to “operate like the world’s largest startup” by reducing layers and giving employees more ownership.
She also said that while Amazon is reducing in certain areas, it will continue hiring in “key strategic areas” and that employees whose jobs are affected will be given 90 days to look for new internal roles.
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“We’re working hard to support everyone whose role is impacted, including offering most employees 90 days to look for a new role internally… and our recruiting teams will prioritise internal candidates,” she said. Those unable or unwilling to find new roles will receive severance pay, health benefits and outplacement services.
Galetti addressed the question of why cuts were happening while the company was performing strongly. “Across our businesses, we’re delivering great customer experiences every day, innovating at a rapid rate, and producing strong business results,” she wrote. “What we need to remember is that the world is changing quickly. This generation of AI is the most transformative technology we’ve seen since the Internet.”
How Does AI Fit Into Amazon’s Plans?
Amazon’s leadership has made it clear that AI is a big part of how the company operates now. Chief Executive Andy Jassy has previously said that AI will lead to job cuts as it takes over routine and repetitive tasks.
Earlier this year, he said the company had created an anonymous complaint line that had already prompted about 450 process changes, much of them aimed at cutting unnecessary bureaucracy.
In closing her message to employees, Galetti said she was inspired by the work across Amazon. “I don’t know of any other company with the breadth of Amazon, the number of exciting bold bets we’re making, and all the ways we can make customers’ lives better and easier around the world,” she said.
The company expects to continue investing in areas such as artificial intelligence and logistics through 2026, even as it trims back in other departments.
