Amazon plans to cut thousands of corporate roles as it redirects investment into artificial intelligence.
The restructuring aims to reduce costs while pushing automation and smarter technology across the company.
Amazon is preparing for a significant reduction in its corporate workforce as the company shifts more resources into artificial intelligence. Reports from multiple media outlets suggest that about 30,000 corporate positions could be cut in a restructuring plan expected to begin this week. These job losses could affect close to ten percent of the company’s corporate staff, which is currently around 350,000. The cuts are not expected to involve employees in Amazon’s warehouses and delivery network, where the company has more than 1.5 million workers worldwide.
The move reflects a broader push by Chief Executive Officer Andy Jassy to reduce costs and simplify the corporate structure. Over the past year, Jassy has pointed to AI as a central force shaping the company’s future. He has repeatedly said that artificial intelligence will change Amazon’s relationship with customers, as well as the way the business handles daily operations.
“Our conviction that AI will change every customer experience is starting to play out,” Jassy told investors during a recent earnings call. The company sees automation and smarter systems as important steps toward efficiency at a time when technology firms across the world are taking bold positions on AI development.
The plan to reduce staff comes just days before Amazon is expected to announce its next financial results. The company has been under growing pressure from investors to show that its large investment in AI will eventually deliver strong returns. Observers say Amazon Web Services, the company’s cloud computing arm, will be especially important in proving that point.
AWS remains one of the most profitable parts of Amazon’s business. It has been spending heavily to expand its AI infrastructure so it can meet rising demand from companies that want more advanced machine learning tools. Analysts believe the division will need to show growth both in revenue and operating margins in the quarters ahead to justify the ongoing spending.
Amazon has not publicly commented on the reported layoffs. However, news of the restructuring led to a small rise in the company’s stock price, which suggests that investors see the cuts as a sign the company is ready to tighten its budget while focusing more on long term priorities.
The planned job cuts also come shortly after AWS experienced a major outage that disrupted many popular internet services. The problem was linked to the Domain Name System, which helps users reach websites and digital platforms. People in Europe and other regions reported failures on streaming platforms like Prime Video and Disney Plus, and messaging apps such as WhatsApp and Signal. Online services including Airbnb, Snapchat, Fortnite, and Duolingo were also affected. Even some banks and Amazon’s own retail site faced difficulties during the downtime.
The incident was eventually resolved, but experts say it demonstrated the scale of Amazon’s influence over the global digital environment.
