Washington – Amazon will cut about 14,000 corporate jobs, as the online retail giant increases its spending on artificial intelligence.
The company’s CEO Andy Jassy, who has aggressively sought to cut costs since taking over in 2021, said in June that he anticipated generative artificial intelligence would reduce Amazon’s corporate workforce in the coming years.
Jassy said at the time that Amazon had more than 1,000 generative AI services and applications in progress or already developed, but that number was a “small fraction” of what it plans to bring together.
Jassy encouraged employees to join the company’s AI plans, and a month later, Amazon announced multimillion-dollar investments to expand cloud infrastructure and advance AI innovation in North Carolina, Pennsylvania, and Australia.
On Tuesday, the online giant said it was cutting bureaucracy.
“The reductions we are sharing today are a continuation of this work to make us even stronger by reducing bureaucracy, removing layers and reallocating resources to ensure we are investing in our biggest bets and what matters most to our customers’ current and future needs,” said Beth Galetti, senior vice president of People Experience and Technology at Amazon, in a message to employees on Tuesday.
Teams and individuals affected by the job cuts will be notified on Tuesday.