Amazon cuts 14,000 jobs to expand AI investments
Amazon has announced a reduction of approximately 14,000 corporate positions as part of a strategy to optimize management processes and increase investments in artificial intelligence.
This decision marks the second major workforce reduction for Amazon since 2022, when 22,000 employees were let go. Senior Vice President of Human Resources and Technology Beth Galetti stated that the new approach aims to strengthen the company through more efficient resource allocation. “Artificial intelligence is the most transformative technology since the internet and significantly accelerates innovation,” she added.
Amazon CEO Andy Jassy previously noted that the development of generative AI and software agents may reduce the need for certain types of jobs. Meanwhile, the company is actively investing in technological infrastructure. In the first half of 2023, Amazon spent $55.6 billion, primarily on the development of Amazon Web Services (AWS) cloud services.
Despite the changes, financial performance remains positive. Amazon’s revenue grew by 13% to $167.7 billion in the second quarter. AWS accounts for a significant portion of total sales, contributing to the company’s stability.
Employees affected by the cuts will be given 90 days to search for new roles internally, and those who do not find new positions will receive severance pay and medical insurance benefits.
| Metric | April 2023 | April 2022 |
|---|---|---|
| Total Revenue | $167.7 billion | $148.4 billion |
| Technology Investments | $55.6 billion | N/A |
| AWS Sales | 18% | N/A |
