Kuwait city: Amazon announced Tuesday plans to cut 14,000 corporate positions, marking its largest round of layoffs in years, as part of efforts to streamline operations and expand investment in artificial intelligence (AI).
According to Kuwait News Agency, Senior Vice President of Human Resources Beth Galetti stated that AI represents "the most transformative technology since the internet," noting its capability to enhance innovation and efficiency across various business functions. Galetti emphasized the company's aim to operate with "fewer layers and more ownership" to improve customer service and responsiveness in a competitive market.
Amazon CEO Andy Jassy had previously indicated in a June email to employees that the company's workforce was likely to shrink as AI becomes more integrated. Jassy highlighted that while AI will lead to a reduction in traditional roles, it will also create new positions requiring advanced technical expertise, underlining the company's long-term shift towards automation and innovation.
He also mentioned that although the total workforce impact remains uncertain, Amazon anticipates a gradual reduction in corporate staff over the coming years as efficiency gains become evident.
The layoffs align with similar workforce reductions across the technology and retail sectors as companies adapt to evolving business models and automation trends. Last week, Target announced cuts of 1,000 corporate jobs and the cancellation of 800 open roles. In July, Meta Platforms laid off 600 employees, and Microsoft eliminated 9,000 positions as part of AI-driven restructuring efforts.