• Amazon plans to cut approximately 14,000 corporate jobs, representing 4% of its workforce.
• The layoffs are driven by an initiative to integrate more artificial intelligence within operations.
• Reports indicate potential layoffs could impact up to 30,000 workers, targeting various corporate divisions.
• Impacted employees will have 90 days to find new roles within the company or receive severance packages.
• Despite the job cuts, Amazon intends to hire 250,000 seasonal workers for upcoming holiday demands.

Amazon has announced plans to cut about 14,000 corporate jobs as part of a broader initiative to reduce expenses amid significant investments in artificial intelligence. This move reflects a shift in the company’s approach to workforce management as it aims to streamline operations following an aggressive hiring period during the COVID-19 pandemic, which saw the company expand its workforce rapidly to meet heightened demand for online services, according to Reuters, Channel News Asia, and NPR.

CEO Andy Jassy previously indicated that the rollout of AI technologies would necessitate a reduction in the workforce, stating that “fewer people will be needed doing some of the jobs being done today” as the company moves towards optimizing efficiency across its operations. The planned layoffs, which were communicated to managers just before notifications began, mark one of the largest reductions in Amazon’s history, impacting several divisions including human resources, Amazon Web Services (AWS), and its devices sector, as reported by SCMP, LA Times, and Africanews.

In total, the layoffs may affect as many as 30,000 corporate roles, although Amazon has officially confirmed about 14,000. Most affected employees will receive a 90-day internal search period for new roles within the company, along with severance packages and outplacement services for those unable to secure a position, according to Bloomberg, The Hill, and India Times.

Despite these corporate cuts, Amazon plans to maintain a sizable seasonal workforce by hiring 250,000 workers over the upcoming holiday season, which remains unchanged from previous years, further underlining the divided nature of employment in the current economic environment where corporate roles are reduced while lower-paid labor opportunities persist, as highlighted by Al Jazeera, India Times, and BBC.