Amazon cuts 14,000 jobs in the company and blames the layoffs on artificial intelligence

Amazon plans to cut about 14,000 jobs at the companies. The mass layoffs were expected to be part of the company’s cost-cutting drive, but are less than the 30,000 job losses. Previous reports had indicated.

Beth Galletti, a senior executive at the e-commerce giant, broke the news to employees at message Tuesday. “The cuts we’re sharing today are a continuation of this work to get 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 clients’ current and future needs,” Galletti said.

Galetti did not give an indication of the roles that would be cut or their whereabouts. Most employees will have 90 days to search for a new job internally, she said.

“Some may wonder why roles are being reduced when the company is doing so well,” Galletti wrote. “This generation of AI is the most transformative technology we have seen since the advent of the Internet, and is enabling companies to innovate much faster than ever before (in existing market segments and in entirely new ones). We are convinced that we need to regulate more flexibly.”

Amazon expects to “continue hiring in key strategic areas” in 2026, but will also continue to look for areas to “make efficiency gains,” Galetti said, suggesting there may be more job cuts on the horizon.

Amazon’s last major round of job cuts was at the end of 2022 and into 2023. When 27,000 workers They were laid off.

Galetti’s memo referred to A message From CEO Andy Jassy sent it to employees in June. In it, the executive heralds generative AI as a source of the efficiency gains Amazon is seeking — read job cuts — and its strategic direction for products and services. The company has made it clear that it hopes to benefit from it Automation, robotics and artificial intelligence As a way to reduce labor costs and ultimately replace thousands of human workers.