Amazon to Cut 16,000 Jobs as AI Reshapes Workforce

Amazon has announced it will eliminate around 16,000 jobs globally, extending its ongoing restructuring plan that started in October. With this new round, Amazon’s total corporate workforce reduction will reach about 30,000 roles.

The latest layoffs are part of Amazon’s efforts to streamline operations, reduce management layers, and increase efficiency. The company hired aggressively during the pandemic and is now adjusting its structure as artificial intelligence (AI) becomes more integrated across its business.

The job cuts will impact multiple divisions, including Amazon Web Services (AWS), retail operations, Prime Video, and human resources teams.

Amazon’s senior vice president of people experience and technology, Beth Galetti, said the company is working to reduce bureaucracy and give teams more ownership. She added that Amazon does not plan to make large-scale layoffs a regular practice, but teams will continue to review and adjust their structures when needed.

Chief executive Andy Jassy had earlier stated that AI tools will automate many tasks, which could lead to a smaller corporate workforce over time. Amazon is also investing heavily in warehouse robotics and AI data centre infrastructure to improve efficiency and support its cloud services.

The job cuts represent a small portion of Amazon’s total workforce of over 1.5 million employees, most of whom work in warehouses and fulfilment centres.

Amazon is scheduled to announce its quarterly earnings next week, which will provide more insight into its financial performance and AI investments.