Online commerce giant Amazon has officially announced that it is cutting approximately 14,000 corporate jobs. This decision was communicated through a blog post by Beth Galetti, Amazon's Senior Vice President of People Experience and Technology.
In her post, Galetti stated that the company is implementing organizational changes across Amazon that will lead to an overall reduction in our corporate workforce of approximately 14,000 roles. She referenced Amazon CEO Andy Jassy's earlier comments from June, where he indicated that AI-driven efficiency gains would likely result in workforce reductions in the future. Galetti emphasized the company's goal to operate like the world's largest startup, focusing on speed, ownership, and delivering the best for customers.
Reason Behind Amazon Job Cuts
Explaining the rationale for one of the largest layoffs in Amazon's history, Galetti highlighted the transformative impact of AI technology. She described this generation of AI as the most transformative technology since the Internet, enabling faster innovation in existing and new market segments. Amazon is convinced of the need to adopt a leaner organizational structure with fewer layers and more ownership to enhance agility for customers and business needs.
She added that these reductions are part of an ongoing effort to strengthen the company by reducing bureaucracy, removing layers, and reallocating resources to invest in key strategic areas and customer priorities.
Amazon's Letter to Employees on Job Cuts
In the open letter, Galetti addressed employees directly, explaining the organizational changes and their impact. She reiterated the importance of the right structure to foster innovation, collaboration, and customer focus. The letter outlined support measures for affected employees, including 90 days to seek internal roles, priority for internal candidates in hiring, and transition support such as severance pay, outplacement services, and health insurance benefits.
Looking ahead to 2026, Amazon plans to continue hiring in strategic areas while identifying opportunities to further streamline operations and achieve efficiency gains. Galetti acknowledged that despite strong business performance, the rapid changes driven by AI necessitate these adjustments to stay competitive and innovative.
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