Amazon to Cut 14,000 Corporate Jobs as AI Investments Surge

By Staff Writer — Avoyelles Today
Published: Oct. 28, 2025

Amazon announced Tuesday that it will eliminate approximately 14,000 corporate positions, marking one of the company’s most significant workforce reductions in recent years as it increases spending on artificial intelligence.

According to an internal letter shared with employees, teams affected by the cuts began receiving notification Tuesday. Those impacted will be given 90 days to seek a new role within the company. Individuals unable or unwilling to transfer will receive severance pay, continued health benefits, and career support services.

The job cuts represent about 4% of Amazon’s corporate workforce. The company currently employs around 350,000 corporate staff and a total of 1.56 million workers worldwide.

AI at the Center of Amazon’s Strategy

CEO Andy Jassy has signaled for more than a year that generative AI would reshape the company’s structure and reduce reliance on traditional office roles.

He has highlighted 1,000+ AI tools and applications already in development across Amazon — including the upcoming Alexa+ — and emphasized that AI will reinvent every corner of customer experience.

Alongside the workforce shift, Amazon continues investing heavily in infrastructure, with $10 billion planned for a new technology campus in North Carolina and additional multi-billion-dollar data center projects launched in Mississippi, Indiana, and Ohio since 2024.

Economic Pressure Meets Tech Expansion

Amazon rapidly expanded hiring during the pandemic, but like many major tech and retail companies, it has spent recent years realigning operations.

Industry analysts say the latest cuts signal a major restructuring, not a retreat.

“This is a strategic reset,” said Neil Saunders of GlobalData.
“Amazon is strong — but shifting from human capital to technological infrastructure.”

While automation accelerates, the broader U.S. job market shows early signs of strain, with private sector job losses reported in September, according to payroll data.

What’s Next for the Tech Giant?

Amazon will report quarterly earnings Thursday, with expectations high for continued growth in Amazon Web Services, which posted 17.5% revenue growth in the previous quarter.

Despite corporate cuts, the company plans to hire 250,000 seasonal workers for the upcoming holidays — matching last year’s seasonal surge.

As Amazon works to balance workforce reduction with AI-driven expansion, company leaders say supporting displaced workers remains a priority.