Amazon cuts staff by 14,000 as it invests in AI

US online retailing giant Amazon said that it is eliminating 14,000 jobs to streamline its operations, without saying where the cuts will come. Photo / Jean-Christophe Verhaegen, AFP

US online retail and cloud computing giant Amazon says it is reducing its workforce by 14,000 to streamline operations as it invests in artificial intelligence, without saying where the cuts will be made.

Amazon said the reductions were a continuation of efforts “to get even stronger by further reducing bureaucracy, removing layers and shifting resources to ensure we’re investing in our biggest bets and what matters most to our customers’ current and future needs”.

“While this will include reducing in some areas and hiring in others, it will mean an overall reduction in our corporate workforce of approximately 14,000 roles,” said the statement signed by senior vice-president Beth Galetti.

The firm refused to comment on whether any New Zealand staff would be culled.

Galetti called AI “the most transformative technology we’ve seen since the internet”, adding that “it’s enabling companies to innovate much faster than ever before”.

American media reported that large-scale layoffs were on the way at the online retailer, citing a worldwide total of 30,000 job cuts over several months.

According to the reports, the cuts would target areas such as human resources, advertising and management in a group that has 350,000 office positions, out of a total of more than 1.5 million employees.

Warehouse workers, who make up the majority of Amazon’s workforce, will likely not be affected, according to Galetti, who indicated that the job cuts were just a first step.

“Looking ahead to 2026, we expect to continue hiring in key strategic areas while also finding additional places we can remove layers, increase ownership and realise efficiency gains,” she said.

Amazon chief executive Andy Jassy has lauded the potential of AI to streamline workplace operations, from engaging with customers online to making offices more efficient.

“Our conviction that AI will change every customer experience is starting to play out,” Jassy said during Amazon’s last quarterly earnings call.

Amazon will next report earnings this week, and is among the tech titans under pressure to show the merit of huge investments in AI.

Amazon will also likely be pressed for details about a recent AWS outage.

Popular internet services ranging from streaming platforms to messaging services to banking were offline for hours last week because of an outage in Amazon’s crucial cloud network, illustrating the extent to which internet life depends on the tech titan.

-Agence France-Presse with Herald staff.