Amazon Cuts 14,000 Corporate Jobs in Massive Shift Toward AI Automation

Amazon announced a massive reduction of its workforce today, cutting approximately 14,000 corporate roles as the company pivots its budget toward artificial intelligence and automation, according to a CBS News report.

Key Facts

• Source: CBS News
• Additional source: The Economic Times
• Industry: E-commerce
• Impact: 14,000 corporate and management positions eliminated globally.
• Severance: Employees will receive 90 days of full pay and benefits during the transition period.

The Push for a Flatter Organization

Amazon (AMZN) leadership is calling this a move to fix the company structure. For years, the retail giant added layers of middle management that slowed down decision-making. A company spokesperson said the goal is to increase the ratio of regular workers to managers by at least 15 percent by early next year. By removing these layers, the company hopes to act more like a startup again.

A source familiar with the plan noted that the cuts are not a sign of financial trouble. Instead, the company is moving money away from traditional office roles and into high-tech projects. Amazon is spending billions on AI infrastructure, and managers believe that generative AI will soon allow fewer people to do jobs that used to require large teams.

Impacted Departments and Benefits

The job cuts are hitting several major divisions. Hardest hit are the Human Resources department, the Amazon Web Services cloud unit, and the Devices team. Internal messages suggest that AI tools are already being used to handle tasks like data analysis and performance reviews, which were previously handled by staff.

Workers who are losing their jobs won’t be out on the street immediately. The company is giving most people 90 days to look for a different job within Amazon. Those who cannot find a new spot will get a severance package, help finding a new job at another company, and continued health insurance for a period of time. This transition period is meant to soften the blow as thousands of high-paid professionals enter a cooling job market.

The Future of Work at Amazon

CEO Andy Jassy has been clear about this shift for months. He previously warned that new technology would eventually shrink the workforce. While the company is cutting 14,000 corporate roles, it is still hiring in other areas. For example, Amazon still plans to bring on 250,000 seasonal workers for the holidays to staff its warehouses and delivery hubs. This shows a clear split: the company is using AI to cut office jobs while still relying on human hands to move packages.

Industry experts say this is a wake-up call for the entire tech sector. If a giant like Amazon can use AI to cut thousands of management roles, other companies will likely follow. The focus for workers now is on learning how to use these new AI tools to remain useful in a changing workplace.