Amazon said on Tuesday it will reduce its corporate workforce by about 14,000 positions as the technology giant cuts operational layers to limit costs amid growing investments in artificial intelligence.
The company had about 1.56 million full- and part-time employees at the end of last year. Amazon’s corporate workforce includes about 350,000 employees.
as the company offsets excess hiring during the pandemic’s peak demand.
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In recent months, Amazon has been restructuring its workforce across multiple divisions, with gradual job cuts across its books, devices and services unit as well as its Wondery podcast division.
Chief Executive Andy Jassy said in June that increasing adoption of generative AI tools would reduce the e-commerce giant’s total corporate workforce in the coming years.
Companies are increasingly using AI to write code for their software and adopting AI agents to automate routine tasks as they seek to save costs and reduce dependence on workers.
