Amazon layoffs: company cuts about 14,000 corporate employees as AI reshapes priorities

Amazon is reducing roughly 14,000 corporate roles in a new restructuring move, a shift executives say will streamline layers, speed decision-making, and free up resources for projects tied to artificial intelligence. The reduction—about 4% of the company’s corporate headcount—was communicated to staff this week, with notifications already reaching employees across the U.S., Canada, and Europe. Impacted workers are being offered a 90-day window to pursue internal opportunities before severance options and benefits kick in.

How many Amazon employees are impacted, and where

While the precise team-by-team breakdown is still emerging, internal guidance indicates that the cuts span multiple corporate functions. Staff reports point to impacts across tech and non-tech roles, with some business units receiving larger allocations of reductions as Amazon narrows focus to high-priority bets. The company emphasized that hiring will continue in select areas aligned with long-term strategy, particularly where AI, automation, and customer-facing innovation demand additional investment.

This round follows earlier job reductions announced between late 2022 and early 2023, when Amazon eliminated about 27,000 roles in a series of steps that touched devices, retail, and other corporate teams. The latest action signals that productivity gains from generative AI and new tooling are now being baked into organizational design and staffing plans.

What Amazon told employees about the layoffs

A leadership memo framed the cuts as part of an effort to “stay nimble” by removing organizational layers and reducing bureaucracy. Key points include:

• 90-day internal job search period: Impacted employees remain on payroll and can apply for open roles.

• Severance and benefits: Those who do not land a new position during the 90-day window will receive a severance package, continued healthcare for a defined period, and outplacement support.

• Global scope: Notifications began this week across North America and Europe, with additional countries following local labor requirements.

• Future staffing: While near-term cuts are significant, leaders indicated hiring will resume in 2026 in targeted areas as priorities evolve.

Why Amazon is making layoffs now

Three forces are driving the decision:

1. AI-driven efficiency: Generative AI, automation, and robotics are reducing the need for certain categories of corporate work while creating demand for specialized roles in data, platforms, and applied science.

2. Simplification: Amazon aims to shorten the chain of command, speed experimentation, and direct dollars to products with clearer customer impact.

3. Cost discipline: After years of expansion and heavy capital spending, management continues to push for higher operating leverage, even as revenue remains resilient.

Put together, the changes reflect a broader trend across large tech companies: fewer generalist corporate layers and more concentrated hiring around core platforms and AI-enabled experiences.

What affected Amazon employees should expect next

For those receiving notices, the next 90 days are crucial. Practical steps include:

• Leverage internal mobility tools: Filter openings by skills and level, and request referrals and “skip-level” conversations to accelerate screening.

• Document achievements quantitatively: Tie metrics to customer outcomes, not just project milestones; this matters in leaner orgs.

• Translate role profiles to AI-era needs: Highlight experience with automation, data quality, LLM integrations, experimentation frameworks, or cost-out initiatives.

• Understand severance mechanics: Confirm payout formula, healthcare duration, equity treatment, and immigration considerations; timelines vary by region.

• Network externally in parallel: Even with an internal search window, market conditions can shift quickly—line up interviews and maintain optionality.

What this means for Amazon’s strategy

Expect continued investment in:

• AI platforms and tooling: From model hosting and safety to applied features inside shopping, ads, and media.

• Customer-facing innovation: Faster iteration cycles and tighter loops between product, engineering, and operations.

• Selective headcount growth: As teams consolidate, new roles will skew toward specialized talent in machine learning, security, and high-scale infrastructure.

In the near term, teams across the company will be rebalancing roadmaps and reassigning ownership as vacated roles are absorbed. For customers and partners, the practical signal is a push toward simpler org structures, clearer product accountability, and a heavier reliance on automation to keep velocity up while costs come down.

Context: the tech labor market in late 2025

Amazon’s move lands amid a broader year of enterprise restructuring, where companies are using AI tailwinds to realign budgets and consolidate overlapping functions. While the headline number is large, the company’s message is that the cuts are a prelude to more focused hiring once the new operating model settles. For employees, the landscape favors demonstrable impact, data fluency, and adaptability—skills that map directly to the next wave of roles both inside and outside Amazon.