Amazon, the second-largest private employer in the US, announced on Oct. 28 that it will lay off 14,000 employees as part of a broader effort to reduce costs and redirect resources toward artificial intelligence (AI) initiatives. The company also indicated that further workforce reductions are likely over the next year.
Earlier reports suggested that Amazon was considering cutting up to 30,000 jobs across departments such as human resources, cloud computing, and advertising. This comes amid a year in which US tech companies have collectively laid off nearly 100,000 workers.
Beth Galetti, Amazon's Senior Vice President of People Experience and Technology, confirmed the layoffs, stating that the company requires a leaner structure to better serve customers and businesses. While specific timelines and affected departments were not disclosed, Galetti assured that impacted employees would have 90 days to look for new roles within Amazon. Those choosing to leave will receive severance pay and additional benefits.
AI tools driving workforce reductions
Amazon's workforce numbered over 1.54 million globally as of Q2 2025, with 350,000 corporate employees. The announced job cuts represent approximately 4% of the corporate employees. Galetti emphasized that this round of layoffs is "just the first step," as Amazon intends to continue downsizing while advancing its AI business. However, recruitment will persist in "key strategic areas."
Amazon's CEO Andy Jassy has been advocating for streamlining operations since the pandemic-induced online shopping surge subsided. Throughout internal meetings and planning documents over the past year, Jassy has consistently highlighted the role of AI in replacing human labor, particularly in repetitive and routine tasks. In June, he noted that widespread adoption of AI would inevitably result in job cuts.
Despite being perceived as lagging behind rivals like Google and OpenAI in the AI race, Amazon is increasing its investments in this sector. According to its Q2 financial report, Amazon Web Services generated US$30.9 billion in revenue for the quarter but still trailed similar offerings from Microsoft and Google. Meanwhile, the company's Q2 capital expenditure soared to US$31.4 billion, the majority of which was allocated to building AI infrastructure.
Recently, Amazon unveiled the "Blue Jay" multi-arm robot, capable of performing tasks such as picking, storing, and consolidating goods simultaneously. On Oct. 23, the company also announced the development of AI-powered smart glasses for delivery drivers, providing detailed navigation, hazard alerts, and package-scanning capabilities to streamline operations.
US tech industry layoffs near 100,000 in 2025
eMarketer analyst Sky Canaves pointed out that Amazon may have realized its internal teams have reached a certain level of productivity enhancement through AI, enabling the company to support large-scale layoffs. Additionally, Amazon is facing financial pressures and needs to offset its massive investments in AI infrastructure in the short term.
As Amazon undergoes layoffs, major tech companies in the US are also striving to replace human labor with AI. Data from Layoffs.fyi, a website that tracks layoffs in the tech industry, shows that as of Oct. 27, 216 US tech companies have laid off approximately 98,000 employees this year. Among them, Microsoft has laid off around 15,000 employees in total this year, while Google has cut hundreds of jobs across multiple departments and reassigned some employees to AI-related roles.
The wave of layoffs driven by AI has also spilled over into traditional industries. Over the past year, sectors such as finance, automotive, and retail have stated that the rise of generative AI is likely already reshaping or expected to reshape their workforce structures. In February this year, Starbucks announced the layoff of 1,100 technical employees, as internal IT positions were being replaced by AI tools.
(Source: Ta Kung Pao)
Related News:
Intel announces further layoffs and restructuring amid Q1 earnings report
Comment