Amazon announced plans to reduce its corporate workforce by 14,000 jobs in a move aimed at reducing bureaucracy, removing layers, and investing more in its AI strategy. This marks the e-commerce giant’s second-largest job cut since 2022 and comes as part of a larger effort to shift resources towards the company’s “biggest bets” in the rapidly changing technological landscape. The layoffs are seen as necessary to make Amazon more agile and efficient in leveraging AI technology to innovate and serve customers better. Despite the decision’s controversy, Amazon believes that streamlining its workforce is crucial for staying competitive and meeting the demands of the evolving market.

The company’s focus on tech infrastructure and AI development has been evident in its substantial investments in these areas, with a significant portion of its revenue dedicated to supporting the growth of Amazon Web Services. As Amazon continues to roll out AI agents and Generative AI, CEO Andy Jassy has emphasized the need for reevaluating and restructuring the workforce to align with the company’s technological advancements. While the job cuts may impact various departments, Amazon is offering affected employees opportunities to transition internally, while also providing support and benefits to those unable to find new roles within the company. In the coming years, Amazon plans to further optimize its operations, remove layers, and drive efficiency gains while focusing on key areas of growth and innovation.