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Amazon (AMZN) said Tuesday it was laying off 14,000 employees and suggested there will be more cuts to come, as the company says it aims to be more "nimble" and embrace AI. Amazon stock was higher in morning trading. "We expect to continue hiring in key strategic areas while also finding additional places we can remove layers, increase ownership and realize efficiency gains," Amazon's top human resources executive, Beth Galetti, wrote in a blog post announcing the job cuts. Reuters reported Monday that the total layoffs could reach 30,000. The layoffs are focused in Amazon's corporate workforce of roughly 350,000. Amazon employs nearly 1.5 million people total on a full- and part-time basis. Amazon has conducted layoffs in smaller numbers for the past two years. But its last major round of layoffs came in late 2022 and early 2023, when the company cut about 27,000 jobs. AI Cited In Amazon Layoffs Galetti acknowledged that the job cuts come as Amazon is "producing strong business results." But she said the world is quickly changing. "This generation of AI is the most transformative technology we've seen since the internet, and it's enabling companies to innovate much faster than ever before (in existing market segments and altogether new ones)," Galetti wrote. "We're convicted that we need to be organized more leanly, with fewer layers and more ownership, to move as quickly as possible for our customers and business." Similarly, Amazon Chief Executive Andy Jassy hinted in June that Amazon would reduce jobs in response to artificial intelligence. "We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs," Jassy wrote in a letter to employees. "It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company." Jassy has focused on cost-cutting across Amazon's operations since he took over as chief executive in 2021. But Amazon has also been ramping up spending on AI initiatives, such as building data centers for its Amazon Web Services cloud business. Analysts forecast that the company's capital expenditures will reach $117.5 billion this year, up 41% year-over-year. Amazon Stock Underperforming In 2025 Meanwhile, Amazon stock was ahead just under 1% at 229 in early trading on the stock market today. The stock gained 1.2% and overtook its 50-day moving average Monday, after Reuters' layoff report. Aggressive investors could plot an early entry at 228.25. But Amazon stock's 3.5% year-to-date gain is significantly underperforming the near 17% gain for the S&P 500. Amazon is also the worst performer among the Magnificent Seven megacap technology stocks. Amazon's shares were pressured earlier in the year by concerns tariffs would eat into profits for the company's e-commerce business, which leans heavily on imports from China for many categories. But investors lately have been more focused on Amazon's profit-driving cloud business. Year-over-year sales growth for Amazon Web Services hasn't accelerated to the same degree as competing services from Microsoft (MSFT) and Google parent Alphabet (GOOGL). Amazon is due to report third-quarter earnings late Thursday. YOU MAY ALSO LIKE: Meta Stock On Winning Streak With Earnings Due. This Number Takes 'Center Stage.' Top Growth Stocks To Buy And Watch Learn How To Time The Market With IBD's ETF Market Strategy Find The Best Long-Term Investments With IBD Long-Term Leaders
