Amazon cuts 16,000 jobs as part of its strategy to invest in artificial intelligence

E-commerce giant Amazon announced Wednesday that it is cutting 16,000 jobs globally, as part of a strategy to reduce costs and redirect investments toward the development of artificial intelligence (A.I.).

The decision, which was initially leaked to the media, was officially communicated to the company's employees on Wednesday morning. In an internal message subsequently posted on the group's website, Vice President of Human Resources and Technology Beth Galetti confirmed the scope of the move.

"The reductions we are making today will impact approximately 16,000 roles across Amazon, and we're again working hard to support everyone whose role is impacted," Galetti said. The executive specified that the company will try to relocate some staff into new positions where possible.

"For teammates who are unable to find a new role at Amazon or who choose not to look for one, we'll provide transition support," the company added in the statement.

A series of layoffs

This adjustment adds to a series of layoffs announced in recent months. Last October, Amazon reported the elimination of 14,000 administrative jobs as part of a reorganization plan in several stages.

The vice president did not rule out further reductions, although she tried to reassure employees. "Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan. But just as we always have, every team will continue to evaluate the ownership, speed, and capacity to invent for customers, and make adjustments as appropriate," she said.

Amazon CEO Andy Jassy had previously anticipated in June the need to cut costs to direct greater resources to artificial intelligence. At that time, he warned that the advance of this technology in coming years would reduce office staff. 

Amazon is one of the largest employers in United States, with approximately 1.5 million workers worldwide, most of them in warehousing and logistics centers. In parallel to the cuts, the company has stepped up its investment in A.I., a key area for its future growth.

The company plans to publish its annual results for 2025 on Feb. 6, in a context of strong technological competition and adjustments in the corporate sector.