Editor’s Note: Reuters reported that Amazon could ultimately reduce up to 30,000 corporate roles, though the company has officially confirmed 14,000 as part of this phase of restructuring.

In an internal memo published on About Amazon, the company announced a reduction of approximately 14,000 corporate positions, describing the move as part of an ongoing effort to “reduce bureaucracy, remove layers, and shift resources” toward its most strategic areas.

The memo, written by Beth Galetti, Senior Vice President of People Experience and Technology, reinforced CEO Andy Jassy’s earlier vision for Amazon to operate like “the world’s largest startup” — emphasizing a leaner structure, faster decision-making, and renewed customer focus. Galetti noted that while some areas will continue hiring, others will shrink to focus investment on the company’s “biggest bets” in artificial intelligence (AI) and automation, as well as on meeting customers’ current and future needs.

Last year, Amazon CEO Andy Jassy published a company-wide memo titled “Strengthening Our Culture and Teams,” outlining his goal for Amazon to operate “like the world’s largest startup.” That message laid the groundwork for today’s restructuring by emphasizing speed, ownership, and fewer management layers.

Reuters reported that the total number of corporate cuts could reach 30,000 — nearly 10% of Amazon’s 350,000 corporate employees. The layoffs primarily target white-collar roles in human resources, AWS, and corporate operations, while warehouse and logistics positions remain unaffected.

Amazon said it will offer affected employees multiple forms of support. Most will have 90 days to find a new role internally, with recruiting teams prioritizing internal candidates to help them stay within the company. For those unable or choosing not to transition, Amazon will provide severance pay, outplacement services, and extended health benefits to ease the shift.

Amazon’s internal message ties the reductions directly to structural efficiency and the accelerating impact of artificial intelligence (AI) — emphasizing that even amid strong business performance, “the world is changing quickly,” and the company must adapt to stay nimble and innovative.

“This generation of AI is the most transformative technology we’ve seen since the Internet,” the memo stated. “It’s enabling companies to innovate much faster than ever before.”

According to Reuters, CEO Andy Jassy has spent the past year targeting layers of middle management and administrative redundancy, supported by a system of AI-driven efficiency reviews. He also introduced an anonymous employee complaint line to identify inefficiencies, which has generated more than 1,500 suggestions and led to over 450 internal process changes — part of a company-wide effort to organize “more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business.”

Jassy has previously acknowledged that increased AI adoption will inevitably automate repetitive and routine tasks, reducing the need for other corporate roles. This aligns with Amazon’s investment in large-scale AI infrastructure, including expanding its cloud-based training clusters and foundation model partnerships through AWS Bedrock.

Analysts say these job cuts reflect both short-term cost optimization and long-term workforce transformation.

“Amazon is likely realizing enough AI-driven productivity gains within corporate teams to support a substantial reduction in force,” said Sky Canaves, senior analyst at eMarketer.

Amazon’s workforce rebalancing also comes as its AWS division faces intensifying competition. While AWS grew 17.5% year-over-year, that’s notably slower than Microsoft Azure’s 39% growth and Google Cloud’s 32%. By contrast, Amazon is hiring 250,000 seasonal workers for the holidays — reinforcing that its automation focus remains primarily on the corporate and technical side, not logistics.

Q1: How is this different from past Amazon layoffs?
A: Unlike warehouse cuts during the pandemic, this round targets corporate and managerial roles. It reflects how AI and automation are now impacting white-collar functions, including HR, operations, and data analysis.

Q2: Why now, if Amazon is performing well?
A: Amazon’s leadership argues that efficiency must evolve faster than the market. With AI driving operational speed, the company says fewer layers enable quicker decisions and stronger customer focus.

Q3: Are all roles being eliminated?
A: No — some divisions are still hiring, particularly in AI research, AWS, and product development. Amazon says it will prioritize internal mobility, offering 90 days for affected employees to find new roles within the company.

Q4: What’s the broader implication for tech and corporate workers?
A: This shift suggests that the next wave of AI disruption will reshape management-heavy organizations. Skills like strategic judgment, cross-domain thinking, and AI-augmented decision-making are becoming more valuable than routine coordination or reporting tasks.

Amazon’s memo hints that more reductions could follow.

Earlier this year, Andy Jassy reiterated that Amazon would continue refining its structure through 2026 — maintaining hiring in key strategic areas while streamlining teams and improving efficiency.

“Looking ahead to 2026,” Beth Galetti wrote, “we expect to continue hiring in key strategic areas while also finding additional places we can remove layers, increase ownership, and realize efficiency gains.”

This language suggests that while 14,000 roles are confirmed now, additional restructuring and efficiency measures may continue as AI adoption deepens within the company’s corporate operations.

While Amazon has not confirmed further layoffs, leadership messaging indicates the company will keep reassessing its corporate structure into 2026 — balancing investment in AI innovation with ongoing cost and productivity initiatives.

The reduction of Amazon’s corporate workforce underscores a pivotal shift: AI is no longer just optimizing warehouse logistics — it’s redefining how offices operate.

As automation tools mature, they’re increasingly absorbing repetitive, procedural tasks once handled by analysts, coordinators, and mid-level managers. Yet this doesn’t eliminate human contribution — it shifts the center of value from execution to interpretation, judgment, creativity, and the kind of contextual understanding that automation can’t replicate.

In this new phase, employees who excel in interpretation, oversight, and adaptive thinking will rise in value, while organizations that learn to balance machine efficiency with human creativity will lead the next chapter of innovation.

For corporate professionals across industries, Amazon’s move is more than a restructuring — it’s a signal of where work is headed: leaner, faster, and more AI-integrated, where the human advantage lies not in repetition, but in reasoning.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant used for research and drafting. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.