Impact of AI: Amazon to lay off 14,000 employees to streamline operations
Global e-commerce giant Amazon has announced plans to lay off 14,000 employees as part of a major restructuring effort driven by the growing influence of artificial intelligence (AI) across its operations, 24NewsHD TV reported on Tuesday.
According to the BBC, the company confirmed on Tuesday that the job cuts will primarily affect its corporate sector, as Amazon seeks to build a leaner and more efficient organizational structure to capitalize on new technological opportunities.
Earlier reports had suggested that as many as 30,000 positions could be at risk, but the company has now finalized the number at nearly half that estimate.
In an internal note to employees, Beth Galetti, Amazon’s Senior Vice President, said the decision aims to make the company stronger and redirect resources toward areas that are more crucial for both its current operations and future growth.
She noted that artificial intelligence represents “the biggest transformation since the advent of the internet,” significantly accelerating innovation and productivity.
“To keep pace, we need a structure that allows us to move faster and make quicker decisions for our customers and business,” she added.
Galetti also emphasized that Amazon is working to support affected employees, offering opportunities for internal transfers where possible.
Those unable to be reassigned will receive special severance packages and assistance.
Amazon currently employs more than 1.5 million people worldwide across its offices and warehouses, making it one of the largest employers in the global tech and retail industries.