Amazon is laying off 14,000 employees in the company, and cutting a large number of jobs
Amazon is laying off 14,000 employees in the company, and cutting a large number of jobs
By Sherin Shibu | Published: 2025-10-28 14:41:00 | Source: Entrepreneur
Key takeaways
- Amazon announced Tuesday that it will cut 14,000 jobs from the company’s global workforce of 350,000 people.
- The layoffs are part of efforts to reduce bureaucracy and reallocate resources to high-growth areas, especially in artificial intelligence.
- Amazon is the fifth most valuable company in the world, with a market capitalization of $2.4 trillion.
Amazon has laid off nearly 14,000 company employees, the company previously announced Blog post Tuesday. It represents one of Biggest job cuts In the company’s history.
According to the post, Amazon is offering several support measures and severance packages to company employees affected by the layoffs. Most employees will have 90 days to seek new roles within Amazon, during which their salaries and benefits will continue. Those who do not secure another position internally during this notice period will receive transitional support, including severance pay and health insurance benefits.
The layoffs are part of an ongoing effort to streamline bureaucracy and redirect resources toward high-growth areas, especially artificial intelligence initiatives. Amazon is making significant investments in AI infrastructure, and is expected to increase capital expenditures Exceeding $120 billion For this year, an increase of nearly 50% over last year.
Amazon is the world The second largest Self-employed, with approx 1.5 million people Working in the company, most of them are in warehouse roles. Of the entire global workforce, About 350,000 They are employees of companies; This means that the latest plan to eliminate 14,000 corporate jobs affects about 4% of Amazon’s corporate employees.
Related to: Amazon just unveiled AI-powered smart glasses for its drivers — here’s what they actually do
Amazon CEO Andy Jassy warned in June that artificial intelligence could cause the company to reduce its workforce. In a memo to employees, Jassy wrote that Amazon “will need fewer people doing some of the jobs done today, and more people doing other types of jobs.”
He wrote that he expects Amazon to reduce its overall headcount over the next few years due to AI, and that employees must learn to use AI tools and get more done with fewer team members.
Amazon is implementing layoffs to make the company leaner and less bureaucratic, even though the e-commerce giant is in good financial shape. According to her Second quarter earnings reportAmazon, which was released on July 31, achieved net profits of $18.2 billion for the second quarter of the year, an increase of 35% compared to the same period last year. This performance was accompanied by revenues of $167.7 billion, an increase of 13% year-on-year, and operating income of $19.2 billion, an increase of 31% over the second quarter of 2024.
Beth Galletti, senior vice president of people and technology experience at Amazon, addressed why the company is cutting roles despite its strong performance. According to Galetti, artificial intelligence enables Amazon to innovate more quickly. Amazon needs to “organize more flexibly” and reduce the number of layers in its organization in order to “move as quickly as possible,” she wrote.
“What we need to remember is that the world is changing rapidly,” Galetti wrote in a blog post. “This generation of AI is the most transformative technology we have seen since the advent of the Internet, and is enabling companies to innovate much faster than ever before (in existing market segments and entirely new ones). We are convinced that we need to organize more agilely, with fewer layers and more ownership, to move as quickly as possible for the benefit of our customers and our business.”
Related to: Amazon CEO Andy Jassy says there’s one trait that contributes an “embarrassing amount” to success
Amazon’s last major rounds of layoffs occurred between late 2022 and early 2023, when the company gradually laid off workers 27,000 employeesAnother big round of job cuts.
Other tech companies have also recently laid off workers. Meta cut 600 jobs from its Superintelligence Labs AI team last week, while Microsoft laid off more than 15,000 employees in May and July.
Amazon will report its third-quarter earnings on Thursday after the market closes. The company is Fifth most valuable In the world, with a market value of $2.4 trillion at the time of writing.
Related to: Amazon aims to replace 600,000 future employees with robots, according to leaked documents
Key takeaways
- Amazon announced Tuesday that it will cut 14,000 jobs from the company’s global workforce of 350,000 people.
- The layoffs are part of efforts to reduce bureaucracy and reallocate resources to high-growth areas, especially in artificial intelligence.
- Amazon is the fifth most valuable company in the world, with a market capitalization of $2.4 trillion.
Amazon has laid off nearly 14,000 company employees, the company previously announced Blog post Tuesday. It represents one of Biggest job cuts In the company’s history.
According to the post, Amazon is offering several support measures and severance packages to company employees affected by the layoffs. Most employees will have 90 days to seek new roles within Amazon, during which their salaries and benefits will continue. Those who do not secure another position internally during this notice period will receive transitional support, including severance pay and health insurance benefits.
The rest of this article is locked.
Join the entrepreneur+ Today to arrive.
(tags for translation) Amazon
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ
