Amazon has revealed plans to eliminate approximately 14,000 corporate positions as part of a restructuring effort aimed at improving operational efficiency and increasing its focus on artificial intelligence (AI) and cloud computing. This reduction follows a broader strategy to streamline management and allocate resources more effectively in key areas. While this marks a significant shift, Amazon has made smaller cuts over the past two years and remains committed to hiring in other growth sectors.

CEO Andy Jassy emphasized the central role of AI in transforming Amazon’s operations, noting that AI innovations are allowing the company to automate tasks and reduce the need for certain roles. Despite these layoffs, Amazon plans to continue investing in cloud infrastructure and AI development, with an estimated $118 billion allocated for these areas this year.

The layoffs will primarily affect corporate divisions, including human resources, logistics, and cloud computing, while warehouse and delivery operations remain unaffected. Employees impacted by the cuts will be given 90 days to explore internal job opportunities, along with severance packages, health benefits, and outplacement support.

This announcement follows a 2023 reduction in which Amazon eliminated 27,000 jobs. Despite these cuts, Amazon continues to adjust its workforce size in response to economic factors, with a growing reliance on technology over human resources to maintain its competitive edge. The company’s stock saw positive movement following the announcement, reflecting investor confidence in its AI-driven strategy.

Sources: Reuters, The Washington Post, AP News