Amazon cuts 14K jobs, expands AI infrastructure
- KP
- Oct 28, 2025
- 2 min read
Amazon is laying off 14,000 corporate jobs as the online retail giant expands its artificial intelligence infrastructure.
The CEO, Andy Jassy, stated that generative AI would lead to a reduction in the company's workforce over the next few years. Jassy became CEO in 2021 and has been pushing to cut costs within the company.
“If you believe your mission is to make customers’ lives easier and better every day, and you believe that every customer experience will be reinvented with AI, you’re going to invest very aggressively in AI, and that’s what we’re doing. You can see that in the 1,000-plus AI applications we’re building across Amazon. You can see that with our next generation of Alexa, named Alexa+,” Jassy said.
In 2024, Amazon invested $10 billion in data center projects in Mississippi, Indiana, Ohio, and North Carolina. The goal is to build up its infrastructure as it competes with other tech giants, OpenAI, Google, Microsoft, Meta, and others.
On Tuesday, those impacted by the job cuts were notified, and many of them were given 90 days to look for a new position. The Senior Vice President of People Experience and Technology at Amazon, Beth Galetti, also stated that those who can't find a new job or opt out of looking will be provided transitional support. This includes severance pay, outplacement services, and health insurance benefits.
These cuts are about a 4% reduction in the workforce, which amounts to approximately 350,000 corporate employees. Amazon has a total workforce of approximately 1.56 million.
The online retailer giant's latest quarterly financial results will be posted on Thursday. Amazon reported in the recent quarter a 17.5% growth for its cloud computing arm, Amazon Web Services.
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