Amazon cuts 16,000 corporate jobs amid efforts to develop AI
Amazon announced Wednesday it is cutting 16,000 corporate-level jobs as it seeks to reduce bureaucracy and free up resources to further develop artificial intelligence technology. The company eliminated another 14,000 jobs three months ago.
Amazon employs about 1.6 million people, with about 350,000 of them in corporate roles.
A senior executive tried to tamp down fears about the company’s future.
“Some of you might ask if this is the beginning of a new rhythm — where we announce broad reductions every few months,” Beth Galetti, senior vice president of people experience and technology, wrote in a blog. “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.”
Amazon significantly increased staffing during the COVID-19 pandemic, as demand for e-commerce soared. However, Amazon CEO Andy Jassy has been trimming the workforce since the end of the pandemic and has said he wants the company to operate like the “world’s largest start-up.” He says that means faster innovation and fewer management layers.
Data Centers and AI effect
Amazon is also pushing ahead with building data centers and investing in AI. Late last year, the company announced capital expenditures would likely hit $125 billion in 2026, as demand increases for its AI services and cloud infrastructure technology, as evidenced by the $38 billion deal between Amazon Web Services and OpenAI in November.
Jassy said last year that efficiency resulting from AI would cause corporate job loss at Amazon.
“We will need fewer people doing some of the jobs that are being done today,” he said, “and more people doing other types of jobs.”
UPS also announces layoffs
Meantime, in a move related to Amazon, UPS announced on Tuesday it is cutting 30,000 jobs. UPS has been slashing jobs since last year after reducing the volume of goods it delivers for Amazon, once its biggest customer.
UPS made a deal with Amazon last year that reduced its dependence on the e-commerce giant while increasing revenue by shipping for small and medium-sized companies. While Amazon still uses multiple carriers, it is increasingly relying on its own delivery network.
“This is a tactical move, and we did something similar last year, in order to help us to right-size the position levels and the network infrastructure,” Brian Dykes, the chief financial officer for UPS, said on a call with analysts.
The Wall Street Journal reports the reductions will come through attrition and driver buy-outs. UPS eliminated 48,000 jobs in 2025 as it also moves toward automation.
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Ella Rae Greene, Editor In Chief
