Amazon cuts 14,000 corporate jobs amid reports it may cut twice as many

(KRON) — Amazon announced plans on Tuesday to cut 14,000 corporate jobs. The announced job cuts come one day after reports that the company was planning to slash more than twice that number. The job cuts come as part of organizational changes at the e-commerce giant, according to a memo sent to employees Tuesday.

The memo, entitled “Staying nimble and continuing to strengthen our organizations,” outlines plans for the company “to operate like the world’s largest startup.” The reductions, according to the memo, are aimed at “reducing bureaucracy, removing layers, and shifting resources.”

While this reorganization will see the company hiring in some areas, in the short-term it means a workforce reduction of approximately 14,000 jobs. Reports Monday from the Wall Street Journal and Reuters, among others, indicate that the number of Amazon layoffs could eventually rise to as many as 30,000.

Impacted employees will be offered 90 days to look for a new role internally with Amazon stating that its recruiting teams will prioritize internal candidates. Laid-off employees who are unable to find new roles at Amazon, or choose not to look for one, will get transition support, including severance pay, outplacement services, and health benefits.

On Monday, Reuters reported the job cuts were part of a lingering effort to right-size after over-hiring during the pandemic. Tuesday’s memo also cited a memo from earlier this year from Amazon CEO Andy Jassy about using generative AI.

“As we roll out more Generative AI and agents, it should change the way our work is done,” Jassy wrote back in June. “We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs.”

“It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the country,” he continued.

Tuesday’s announced job cuts amount to roughly 4% of the company’s reported 350,000 corporate employees. Amazon has major offices throughout the Bay Area, including in Santa Clara, Sunnyvale, San Francisco, and East Palo Alto.