Amazon Cuts 14,000 Corporate Jobs As Artificial Intelligence Spending Accelerates

November 5, 2025

Amazon announced it will eliminate approximately 14,000 corporate positions, representing a 4% reduction in its corporate workforce, as part of a strategic shift toward increased artificial intelligence investment while reducing costs in other areas. Affected employees were notified on October 28 and given 90 days to seek internal transfers, with severance packages available for those unable to find new roles within the company. This marks Amazon's largest workforce reduction since 2023, when 27,000 jobs were cut, as CEO Andy Jassy continues his cost-cutting efforts that began when he took leadership in 2021.

Who is affected

14,000 Amazon corporate employees losing their positions
Amazon's total corporate workforce of approximately 350,000 employees
CEO Andy Jassy and Senior Vice President Beth Galetti (leading the restructuring)
Amazon's competitors in AI (OpenAI, Google, Microsoft, Meta)
Workers in North Carolina, Mississippi, Indiana, and Ohio (where data center projects are being built)

What action is being taken

Amazon is cutting 14,000 corporate jobs
Impacted employees are being notified
Affected workers are being given 90 days to search for internal positions
Amazon is providing severance pay, outplacement services, and health insurance benefits
Amazon is investing $10 billion in building infrastructure across multiple states
Amazon is hiring 250,000 seasonal workers for the holiday season
The company is building over 1,000 generative AI services and applications

Why it matters

This workforce reduction signals a fundamental transformation in how major technology companies are allocating resources, prioritizing capital-intensive AI infrastructure over human employees. The layoffs demonstrate that even financially strong companies with solid growth metrics are restructuring to maintain competitiveness in the rapidly evolving AI landscape. Amazon's strategy reflects broader industry trends where technological infrastructure investment is displacing traditional corporate roles, potentially setting a precedent for other tech giants. Despite operating from a position of strength with 17.5% growth in cloud services, Amazon's actions suggest that sustained investment in AI requires significant reallocation of resources, which may indicate future workforce volatility across the tech sector.

What's next

No explicit next steps stated in the article regarding future layoffs or additional workforce changes. Amazon has not disclosed whether more job cuts are planned.

Read full article from source: The San Diego Voice & Viewpoint