Here is what we know: Amazon has confirmed 14,000 job cuts as part of their AI drive, and more layoffs are inevitable.

As AI use increases, Amazon admits the loss of 14,000 corporate roles, or about 4% of its staff. This comes after several departments were affected by a reduction in management roles.

Just months after CEO Andy Jassy warned that AI will shrink the company's workforce, Amazon.com Inc. disclosed plans on Tuesday to eliminate almost 14,000 corporate roles.

Jassy warned in June that the e-commerce behemoth would probably lay off employees as it increasingly uses artificial intelligence to complete tasks that are typically completed by humans.

In a blog post on Tuesday, Beth Galetti, senior vice president of people experience and technology at Amazon, stated, "The reductions we're sharing today are a continuation of this work to get even stronger by further reducing bureaucracy, removing layers, and shifting resources to ensure we're investing in our biggest bets."

According to Bloomberg, which cited people with knowledge of the situation, the layoffs are impacting a variety of areas, including the cloud computing business, payments, logistics, and video games.

There will be more layoffs soon.
Galetti alluded to additional layoffs by stating that Amazon plans to employ in strategic regions in 2026.

"Some may ask why we're reducing roles when the company is performing well," she stated while discussing the rationale behind the job layoffs. We must keep in mind that the world is changing rapidly. The most revolutionary technology since the Internet is this generation of AI, which is allowing businesses to develop far more quickly than in the past.

"As Andy discussed earlier this year, we anticipate continuing to hire in key strategic areas in 2026, while also identifying additional areas where we can remove layers, increase ownership, and realize efficiency gains," she continued.

What was the response of Amazon employees?
After Amazon announced 14,000 layoffs on Tuesday, workers began gathering in chat rooms on social media. They talked about which departments were impacted and exchanged details on the notifications that workers would get regarding upcoming layoffs. According to the news portal, they also asked for suggestions on businesses that were recruiting right now and shared tips on how to get personal files off work computers before access was blocked.

Regarding layoffs at Amazon
Three years ago, the company's previous round of layoffs happened gradually over a period of five months. Following Amazon's yearly strategy, it began in the fall and continued in January following the Christmas shopping season and again in March.

Earlier, there were rumors that Amazon might lay off about 30,000 employees. According to the research, such terminations would surpass the rolling layoffs that impacted over 27,000 corporate employees in late 2022 and early 2023 as Jassy sought to reduce expenses after a pandemic-driven boom.

About 1.55 million individuals were employed by Amazon as of June 30th, the majority of whom were warehouse workers. The current 14,000 job losses announced Tuesday represent around 4% of the approximately 3,50,000 employees that make up the corporate staff.

After Amazon went on a hiring binge due to the pandemic, Jassy made it clear that he was committed to reducing management-level positions and reducing bureaucracy. According to the source, his June comments about using AI to automate more procedures alarmed staff members, who are already upset over continuous managerial cuts.

Soon after, there were indications that the corporation was slashing costs. According to persons with knowledge of the situation who spoke to Bloomberg, Amazon increased its attrition targets over the summer and stopped hiring new employees for its corporate advertising and logistics divisions.