Tech Giant Slashes Workforce Amid AI Investments and Cost-Cutting Measures, Signaling Broader Industry Shifts

October 28, 2025 | SEATTLE — Amazon.com Inc. confirmed on Tuesday that it will eliminate approximately 14,000 positions from its global corporate workforce, marking one of the largest single-day layoff announcements in the company's history. The cuts, which begin immediately, are part of a broader plan to reduce up to 30,000 jobs—roughly 10% of its corporate staff—as the e-commerce behemoth reallocates resources toward artificial intelligence initiatives and streamlines operations in a post-pandemic economy.

In an internal memo to employees, Amazon's head of human resources, Beth Galetti, described the move as a "necessary step" to position the company for long-term growth. "We are sharpening our focus on high-impact areas like AI and machine learning, which require us to make tough decisions on our organizational structure," Galetti wrote, according to reports. The layoffs primarily target non-technical corporate roles, including marketing, policy, and program management teams, sparing frontline fulfillment center workers who have already faced reductions in prior rounds.

The announcement follows months of speculation fueled by Reuters, which first reported on Monday that Amazon was preparing sweeping cuts starting this week. Wall Street Journal sources echoed the scale, estimating the total impact at 30,000 positions over the coming months. Amazon's stock rose modestly in premarket trading, up 0.5%, as investors viewed the restructuring as a signal of fiscal discipline amid slowing consumer spending and intensifying competition from rivals like Walmart and Shopify.

This latest wave builds on Amazon's aggressive cost-control efforts that began in late 2022, when the company shed over 27,000 jobs across its divisions in response to overhiring during the COVID-19 boom. Since then, CEO Andy Jassy has emphasized "flattening the organization" to boost efficiency, a strategy that has included closing underperforming warehouses and scaling back experimental projects in areas like electric vehicles.

Analysts see the cuts as a pivot toward Amazon's burgeoning AI ambitions. The company recently poured billions into its Bedrock platform and custom chips, aiming to challenge leaders like OpenAI and Google in generative AI. "These layoffs are less about contraction and more about reinvention," said Wedbush Securities analyst Daniel Ives. "Amazon is betting big on AI to drive the next leg of growth, even if it means short-term pain for white-collar staff."

Employee reactions have been mixed, with some expressing shock on platforms like LinkedIn and Reddit, where threads about the layoffs quickly amassed thousands of views. One former Amazon manager posted, "It's a bloodbath in corporate—great for shareholders, brutal for families." Severance packages, including up to six months of pay and health benefits, have been offered to those affected, per company policy.

The news comes as Big Tech grapples with similar headwinds. Meta and Google have trimmed thousands of roles this year, while Microsoft faces scrutiny over its AI hiring spree. For Amazon, with over 1.5 million employees worldwide, the 14,000 cuts represent a fraction of its total headcount but underscore the precariousness of corporate jobs in an era of rapid technological disruption.

Amazon declined to comment beyond the internal memo. Further details on the timeline for additional reductions are expected in the company's next earnings call.