Amazon Confirms Job Cuts Amid AI Focus

Amazon, the global tech giant, has confirmed plans to reduce its corporate workforce by approximately 14,000 positions. This decision comes as the company aims to reorganize itself more efficiently to take advantage of artificial intelligence (AI) opportunities.

Beth Galetti, a senior vice president at Amazon, explained that this move would make the company stronger by redirecting resources to areas that matter most to customers' current and future needs. Despite Amazon's recent strong financial performance, with sales increasing by 13% in the second quarter, the company believes these cuts are necessary.

Amazon views AI as a transformative technology, comparable to the impact of the internet. The company is convinced that a leaner organization with fewer layers will allow them to move more quickly in response to customer and business needs. While some employees will be helped to find new roles within Amazon, others will receive support, including severance pay, as they transition out of the company.