Amazon cuts 16,000 corporate jobs amid AI-driven restructuring

WASHINGTON: Amazon has confirmed it is cutting 16,000 corporate jobs, completing a restructuring plan that has eliminated around 30,000 roles since October as the company rolls back pandemic-era hiring and increases its focus on artificial intelligence.

The latest layoffs affect nearly 10 per cent of Amazon’s corporate workforce, though they represent only a small fraction of its total 1.58 million employees, most of whom work in fulfilment centres and warehouses.

Amazon’s top human resources executive, Beth Galetti, said the cuts were aimed at strengthening the company by “reducing layers, increasing ownership, and removing bureaucracy.”

She added that some teams could still face further adjustments, leaving open the possibility of more job losses.

This is the second major round of layoffs in three months. In October, Amazon cut about 14,000 jobs, citing the growing use of AI and concerns about changes in corporate culture.

Amazon has also acknowledged it overhired during the COVID-19 pandemic, when online shopping demand surged worldwide.

Galetti said the company did not plan to announce broad job reductions every few months, despite the recent cuts.

The layoffs also highlight how AI is reshaping corporate workforces. Advances in AI assistants are allowing companies to automate tasks ranging from routine administration to complex coding.

Amazon CEO Andy Jassy has previously said the wider use of AI tools would lead to more automation and fewer corporate roles.

The job cuts come as major technology companies, including Meta and Microsoft, continue to restructure after expanding rapidly during the pandemic.

Amazon also recently announced it would close its remaining Fresh grocery stores and Go markets, marking a further step back from its physical retail strategy.

The company has meanwhile been investing heavily in robotics at its warehouses to speed up deliveries, reduce reliance on human labour and cut costs.