Copyright bizwatchnigeria
Amazon has confirmed plans to cut approximately 14,000 jobs within its global corporate division as part of a strategic restructuring to streamline operations and capitalize on emerging opportunities in artificial intelligence (AI). The e-commerce and cloud computing giant disclosed the move on Tuesday, emphasizing the need to become “leaner and more efficient” to accelerate innovation and adapt to rapid industry transformation driven by AI technology. Beth Galetti, Amazon’s Senior Vice President, explained in a company-wide memo that the layoffs aim to strengthen the organization by redirecting resources toward its most promising initiatives. “We’re ensuring that we invest where it matters most — in the areas that will define the future for our customers and our business,” she said. Galetti acknowledged the company’s recent strong performance — Amazon’s Q2 results surpassed Wall Street expectations with a 13% year-over-year increase in sales to $167.7 billion. However, she stressed that the restructuring is necessary because AI represents “the most transformative technology since the internet,” enabling faster innovation and operational agility. “To stay ahead, we must operate more nimbly, with fewer layers and stronger ownership,” she added. According to Amazon, employees affected by the layoffs will receive transition support, including severance packages and assistance in finding alternative roles within the company. Amazon employs more than 1.5 million people globally, including around 350,000 in corporate roles. While the company did not specify how many UK-based employees would be affected, the cuts are expected to impact several regions. The move continues a pattern of workforce reductions in Amazon’s corporate sector, following previous rounds in 2022 that saw about 27,000 employees laid off. The company, like many in the tech industry, had expanded aggressively during the pandemic to meet surging demand for e-commerce and digital services. Since then, CEO Andy Jassy has prioritized cost optimization while investing heavily in AI-driven systems to enhance efficiency. Jassy earlier hinted that AI advancements would inevitably reshape Amazon’s workforce. “We’ll need fewer people performing some existing tasks and more people working on emerging technologies,” he said in June. Industry analysts have noted that the restructuring could influence other major technology firms. Ben Barringer, a technology analyst at Quilter Cheviot, remarked that “AI’s growing capabilities are leading to inevitable job displacement, particularly in software development,” and predicted that companies like Amazon would continue realigning their talent structures to stay competitive. Amazon will release its quarterly financial results on Thursday, which investors will closely monitor for insight into the company’s next phase of AI integration and its long-term cost-saving strategy.
