Amazon announces major job cuts
(MENAFN) Amazon has announced a major workforce reduction, cutting roughly 14,000 corporate positions, amounting to about 4% of its office staff, as the company pivots toward artificial intelligence (AI) and restructures operations. According to reports, the layoffs affect employees in the US, Canada, and Europe. The company stated that AI is “enabling companies to innovate much faster than ever before.”
This represents Amazon’s largest job cut since 2023, when it eliminated 27,000 roles globally. Since 2024, the tech and retail giant has invested approximately $40 billion in four US data center projects, aiming to strengthen its infrastructure to compete with firms such as OpenAI, Google, Microsoft, and Meta.
The layoffs come amid a broader trend in the tech sector, where automation and AI-driven restructuring are reshaping employment. Data from Layoffs.fyi shows that nearly 113,000 tech employees have been let go across 218 companies globally this year. Major US tech firms are also reducing staff: Microsoft plans to cut about 6,000 roles, roughly 3% of its workforce; Alphabet has downsized teams across Android, Pixel, and Chrome; Intel is reportedly preparing to eliminate over 20% of its workforce, and Apple cut more than 600 jobs in California last year.
The move has drawn criticism from figures such as Senator Bernie Sanders, who argued that technology is increasingly being used to boost corporate profits and concentrate wealth. He highlighted executives simultaneously investing heavily in automation while executing large-scale layoffs.
Beyond AI, other factors driving Amazon’s restructuring include slow revenue growth and global economic uncertainty, reflecting pressures felt across the tech industry.
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