Amazon announced plans to eliminate about 14,000 corporate positions worldwide, marking one of its largest restructuring efforts since 2023. The reduction, which affects roughly 4% of its global corporate staff, comes as the company refocuses its resources toward artificial intelligence (AI) development and automation.
According to internal documents and statements released on October 28, 2025, the layoffs will primarily impact non-warehouse divisions, including devices, advertising, Prime Video, human resources, and Amazon Web Services (AWS). Senior VP Beth Galetti said in a memo that the company is “streamlining decision-making and redeploying resources to support long-term innovation.”
The reduction follows a period of rapid hiring during the pandemic, when Amazon’s workforce swelled to meet soaring e-commerce demand. With growth now moderating, the company is realigning to prioritize AI-driven efficiency and sustainable profit margins.
Artificial Intelligence at the Core of the Strategy
CEO Andy Jassy emphasized that the company’s shift reflects a structural transformation driven by AI. Over the past year, Amazon has launched or integrated more than 1,000 generative AI applications across its retail, logistics, and cloud operations. “AI is the most transformative technology since the Internet,” Galetti stated, adding that it will “reshape how we work, make decisions, and serve customers.”
The company’s AI efforts include expanding AWS Bedrock, a platform that enables clients to build custom AI models, and deploying generative AI assistants for sellers and advertisers. Amazon has also increased capital expenditures on high-performance chips and cloud infrastructure to stay competitive with Microsoft and Google, both of which have heavily invested in AI. Analysts estimate that Amazon will spend over $70 billion on technology and infrastructure in 2025, up nearly 25% from the prior year.
Internal Adjustments and Employee Transition Support
Amazon stated that impacted employees will receive 90 days to apply for new positions within the company. Those unable to relocate will be offered severance packages, extended healthcare benefits, and job placement assistance. The company will continue hiring in select high-growth areas such as AI engineering, data analytics, and robotics, signaling that its layoffs are targeted rather than across the board.
The devices division, which is responsible for Echo, Kindle, and Fire TV, is among the hardest hit, as Amazon consolidates overlapping teams and scales back experimental projects. Within AWS, certain sales and marketing roles will be reduced to streamline operations as the division integrates new AI tools for customer support and system optimization.
Industry experts note that these measures align with Amazon’s long-term goal of reducing administrative overhead while strengthening automation capabilities. The company has previously faced criticism for its sprawling hierarchy, which Jassy described as “slowing innovation and decision cycles.”
Broader Impact Across the Tech Industry
This marks Amazon’s third major round of job reductions since late 2022, bringing the total number of eliminated positions to over 40,000. The trend mirrors similar moves by Google, Meta, and Microsoft, which have also trimmed white-collar workforces while reallocating funds toward AI and cloud technologies.
Economists suggest that such layoffs reflect a structural transition rather than a short-term downturn. Companies are increasingly automating repetitive office tasks and redirecting investment into AI-driven systems that can boost productivity with fewer human resources. At the same time, demand for AI specialists, data scientists, and software engineers continues to rise sharply, highlighting a bifurcation in the technology labor market.
Despite concerns about employment stability, Amazon’s financial fundamentals remain strong. In its most recent quarterly earnings, the company reported $147 billion in revenue and operating income of $14 billion, supported by strong performance in AWS and advertising. The restructuring, analysts say, is designed to ensure that future growth remains both lean and scalable as the AI race intensifies.