Amazon Announces Major Job Cuts in 2025: A Shift Towards AI
Amazon, in a shocking announcement on Tuesday, revealed plans to eliminate approximately 14,000 corporate positions. This decision, which affects about 4% of its corporate workforce, marks the largest single corporate layoff of 2025.
The move comes as CEO Andy Jassy intensifies his campaign to reduce bureaucracy and channel more resources into artificial intelligence. The tech giant is set to invest an estimated $118 billion this year alone in AI development and cloud infrastructure.
The layoffs will impact several divisions within the company. These include:
- Cloud Computing
- Logistics
- Payments
- Video Games
- Human Resources
- Communications
Beth Galetti, Amazon’s Senior VP of People Experience and Technology, pointed out the need to operate “more leanly, with fewer layers and more ownership” to stay competitive in the rapidly evolving AI landscape.
Affected employees will be given a 90-day period to secure internal roles, with severance packages promised to those who are unsuccessful. This decision follows Amazon’s earlier warning that AI adoption would inevitably lead to a reduction in its workforce. Jassy has stated that the company “will need fewer people doing some of the jobs that are being done today.”
With this latest round of layoffs, Amazon’s total corporate job cuts since 2022 have now exceeded 40,000.
Source: CNBC