Amazon cuts thousands of corporate jobs as it ramps up AI spending
Amazon announced on Tuesday that it will eliminate thousands of corporate positions as part of a broader effort to streamline operations while accelerating investment in artificial‑intelligence technologies. The move affects employees across various support functions, including finance, marketing and human resources.
In an internal memorandum, the company’s senior vice president of human resources, Beth Galetti, said the restructuring is intended to “align our workforce with evolving business priorities” and to free up resources for AI‑driven initiatives. While the exact number of jobs has not been disclosed, analysts estimate the cuts could represent between 5 % and 7 % of Amazon’s corporate staff, amounting to several thousand workers.
The layoffs come at a time when Amazon is expanding its AI portfolio, launching new generative‑AI tools for sellers, integrating large‑language models into its cloud services, and competing with rivals such as Microsoft and Google for market share. The company has already committed billions of dollars to AI research and development, and the staffing reductions are portrayed as a way to fund these projects without compromising overall profitability.
Industry observers note that the decision reflects a broader trend in the technology sector, where firms are balancing aggressive growth in emerging technologies against the need to control operating costs. Labor groups have expressed concern about the impact on workers, while market analysts suggest the cuts may improve Amazon’s ability to innovate and maintain its competitive edge. Generic statements from economic experts indicate that such restructuring is typical for large corporations undergoing digital transformation.
Looking ahead, Amazon plans to continue hiring for roles directly tied to its AI strategy, signaling a shift in talent priorities. The company expects the restructuring to position it more effectively for future growth, although the immediate effect on affected employees and the broader labor market will likely be monitored closely by regulators and industry watchers alike.
