Amazon announced Tuesday that it will eliminate 14,000 corporate positions — one of the largest workforce reductions in the company’s history — as it continues restructuring under CEO Andy Jassy’s push for efficiency.
Beth Galetti, Amazon’s senior vice president of people experience and technology, revealed the sweeping layoffs in a company blog post, describing the decision as part of the ongoing transformation to run Amazon “like the world’s largest startup.” She emphasized that while the company remains strong financially, the rapid evolution of artificial intelligence has fundamentally changed the way Amazon operates.
“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),” Galetti wrote. She explained that in order to keep pace, Amazon must be more agile, cutting through layers of management and redirecting resources toward areas with the most growth potential.
The restructuring will affect roughly 4% of Amazon’s corporate staff — about 14,000 out of its 350,000 white-collar workers — though the company will continue to employ over 1.5 million people worldwide. Galetti said that while some divisions will see cuts, Amazon will keep hiring in strategic departments focused on innovation and emerging technology.
The move reflects Jassy’s multi-year effort to make Amazon leaner, more disciplined, and faster to adapt. Since the pandemic-era surge faded, Amazon has been trimming costs, eliminating underperforming ventures, and restructuring management. Jassy’s initiatives have included tightening budgets, streamlining operations, reducing bureaucracy, and requiring employees to return to the office full-time.
Amazon’s cost-cutting campaign gained momentum after 2022, when demand normalized and profits tightened following the company’s aggressive expansion during the pandemic. Jassy had warned earlier this year that AI-related efficiencies would likely lead to workforce reductions. In June, he said Amazon’s adoption of advanced automation would “shrink certain functions,” foreshadowing the current layoffs.
The company’s retail and cloud divisions have already seen hiring freezes and job losses this year, part of a broader trend among major technology firms adjusting to the AI boom. Microsoft cut around 15,000 positions in 2025, with CEO Satya Nadella urging staff to “remain focused on its three core priorities: security, quality, and AI transformation.” Meta has also laid off employees, telling some departments that their roles are being replaced with automated systems.
Amazon’s internal memo to staff elaborated on the changes:
“I want to let you know that we’re making organizational changes across Amazon that will impact some of our teammates. There will be communications from leaders to those teams and individuals today, but we also wanted to share the broader context about what’s happening and why. Last year, Andy posted a note about strengthening our culture and teams — explaining how we want to operate like the world’s largest startup, the importance of having the right structure to drive that level of speed and ownership, and the need to be set up to invent, collaborate, be connected, and deliver the absolute best for customers. Many of you have put significant effort into that work of strengthening your organizations by reducing layers, increasing ownership, and helping reduce bureaucracy. We’re already seeing the results, with teams moving faster and many Amazonians feeling more ownership, and the S-team and I appreciate all the work you’ve done. The reductions we’re sharing today are a continuation of this work 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. While this will include reducing in some areas and hiring in others, it will mean an overall reduction in our corporate workforce of approximately 14,000 roles. We’re working hard to support everyone whose role is impacted, including offering most employees 90 days to look for a new role internally (the timing will vary some based on local laws), and our recruiting teams will prioritize internal candidates to help as many people as possible find new roles within Amazon. For our teammates who are unable to find a new role at Amazon or who choose not to look for one, we’ll offer them transition support including severance pay, outplacement services, health insurance benefits, and more. Looking ahead to 2026, as Andy talked about earlier this year, we expect to continue hiring in key strategic areas while also finding additional places we can remove layers, increase ownership, and realize efficiency gains. Some may ask why we’re reducing roles when the company is performing well. Across our businesses, we’re delivering great customer experiences every day, innovating at a rapid rate, and producing strong business results. 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, and it’s enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones). We’re convicted that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business. 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. I’m inspired by what I see across the company every day, and the S-team and I appreciate all that you do. Beth.”
{Matzav.com}
